TPG, through its TPG Rise Climate Transition Infrastructure strategy, has agreed to acquire Altus Power, a commercial-scale solar assets owner in the US, in an all-cash transaction valued at about $2.2bn, including outstanding debt.
According to the terms of the agreement, TPG will purchase all outstanding shares of Altus Power’s Class A common stock for $5 per share. Altus Power is currently listed on the New York Stock Exchange (NYSE).
This consideration represents a premium of 66% to the company’s closing price on 15 October 2024.
Altus Power stated that the acquisition will strengthen its ability to serve both commercial and community solar customers by expanding access to clean energy.
The company expects to leverage TPG Rise Climate’s investment resources alongside its expertise in commercial-scale solar to accelerate operational growth and meet rising demand for power generation.
Altus Power CEO Gregg Felton said: “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 aligns perfectly with our vision.”
Following the closing of the proposed deal, Altus Power will become a privately held company, and its Class A common stock will be delisted from the New York Stock Exchange (NYSE).
The transaction has been unanimously approved by Altus Power’s board of directors.
Altus Power plans to continue to operate from its headquarters in Stamford, Connecticut.
TPG Rise Climate managing partner and infrastructure head Scott Lebovitz said: “We are excited to partner with Altus Power, which has established itself as a leader in commercial scale, clean power solutions with an exceptional track record of growth.”
Subject to stockholders’ approval, regulatory approvals and customary conditions, the transaction is anticipated to be completed in Q2 2025.
For the transaction, Moelis & Company served as financial adviser to Altus Power, while Latham & Watkins is legal counsel. PJT Partners acted as financial adviser to TPG Rise Climate, with Kirkland & Ellis providing legal counsel.
