US-based solar projects developer Altus Power has made a definitive agreement to be acquired by the global alternative asset management firm TPG through its TPG Rise Climate Transition Infrastructure strategy.
The all-cash deal values Altus Power at $2.2bn, including outstanding debt, with shareholders receiving $5 per share for their Class A common stock.
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On completion, Altus Power will be delisted from the New York Stock Exchange. and operate as a private company.
The agreed purchase price is a 66% premium over Altus Power’s closing price on 15 October 2024, the day before the company announced its strategic review.
This acquisition is the outcome of a thorough examination of strategic options, guided by financial and legal advisors to optimise shareholder value.
Altus Power’s partnership with TPG will enhance its capacity to provide value to its commercial and community solar customers, by facilitating broader access to clean electric power.
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By GlobalDataReuters reported in December 2024 that TPG was in talks to acquire Altus.
Altus Power CEO Gregg Felton stated: “We are incredibly excited to partner with TPG Rise Climate to continue to build our position as the leading commercial-scale provider of clean electric power to businesses and households from coast to coast. TPG Rise Climate’s deep expertise in the clean energy sector, investment-oriented mindset and value-driven approach to infrastructure development align perfectly with our vision.
“This partnership strengthens our ability to serve both our community solar and commercial clients with clean electric power at a time when power demand is expected to grow substantially. As a private company, Altus Power will be better positioned for continued long-term growth, which we believe will allow us to scale our operations, drive innovation and enhance the value we deliver to our customers.”
The Altus Power board of directors has given unanimous approval to the transaction and will recommend that shareholders vote in favour of the merger agreement at a forthcoming special meeting of stockholders.
Altus Power board chair Christine Detrick stated: “On behalf of the Altus Power board of directors, we’re pleased to have unanimously approved this transaction with TPG Rise Climate and believe this partnership is a natural fit, with strong synergies that will drive growth and innovation.”
Subject to stockholder approval and other standard closing conditions, including regulatory clearances, the transaction is set for completion in the second quarter of 2025.
Altus Power expects to retain its headquarters in Stamford, Connecticut.
Moelis & Company is serving as financial advisor and Latham & Watkins as legal counsel for Altus Power. TPG Rise Climate has engaged PJT Partners for financial advice and Kirkland & Ellis for legal counsel.
