ALLETE To Go Private In $6.2 Billion Deal

By Amit Chowdhry • May 7, 2024

ALLETE – a leading energy company and provider of safe, reliable, and competitively priced energy with a national footprint – and a partnership led by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP) announced that they have entered into a definitive agreement under which the partnership will acquire ALLETE for $67 per share in cash, or $6.2 billion including the assumption of debt.

ALLETE and its family of companies, which includes regulated utilities and renewable energy companies, are focused on driving the clean-energy transition by expanding renewables, reducing carbon, enhancing grid resiliency, and driving innovation.

CPP Investments and GIP are well-resourced global infrastructure investors with deep industry expertise and long-term outlooks. The companies bring over four decades of experience investing in large-scale infrastructure businesses across sectors to support sustainable and long-term growth.

Under the merger agreement’s terms governing the proposed transaction, CPP Investments and GIP made several commitments to align with ALLETE’s shared purpose, culture, and values.

This includes retaining its workforce, honoring union contracts, and our strong partnership with the International Brotherhood of Electrical Workers. The company will also maintain its current headquarters in Duluth, Minnesota, and leadership with ALLETE’s Minnesota Power and Superior Water, Light and Power (SWL&P) will continue as independently operated, locally managed, regulated utilities and Bethany Owen continuing as CEO. The current management team will continue to lead ALLETE and remain as the primary points of contact for customers, regulators, and other stakeholders.

Following the closing of the deal, Minnesota Power and SWL&P will continue to be regulated by the Minnesota Public Utilities Commission (MPUC), the Public Service Commission of Wisconsin (PSCW) and the Federal Energy Regulatory Commission (FERC). And the acquisition is not expected to impact retail or municipal rates for utility customers.

This acquisition was unanimously approved by ALLETE’s Board of Directors and is expected to close in mid-2025, subject to the approval of ALLETE’s shareholders, regulatory approvals, and other customary closing conditions. The dividends payable to ALLETE shareholders are expected to continue in the ordinary course until the closing, subject to approval by ALLETE’s Board of Directors. Upon completing the deal, ALLETE’s shares will no longer trade on the New York Stock Exchange, and ALLETE will become a private company.

J.P. Morgan Securities is acting as lead financial advisor and provided a fairness opinion to ALLETE, and Houlihan Lokey Capital also provided a fairness opinion to ALLETE. Skadden, Arps, Slate, Meagher & Flom is acting as legal advisor to ALLETE.


“Our ‘Sustainability-in-Action’ strategy has secured ALLETE’s place as a clean-energy leader. Through this transaction with CPP Investments and GIP, we will have access to the capital we need while keeping our customers, communities and co-workers at the forefront of all that we do, with continuity of our day-to-day operations, strategy and shared purpose and values. CPP Investments and GIP have a successful track record of long-term partnerships with infrastructure businesses, and they recognize the important role our ALLETE companies serve in our communities as well as our nation’s energy future. Together, we will continue to invest in the clean-energy transition and build on our 100 plus-year history of providing safe, reliable, affordable energy to our customers.”

“Our ‘Sustainability-in-Action’ strategy will require focused execution and significant capital. Transitioning to a private company with these strong partners will not only limit our exposure to volatile financial markets, it also will ensure ALLETE has access to the significant capital needed for our planned investments now and over the long term. Importantly, CPP Investments and GIP are aligned with ALLETE’s values of safety, integrity, planet and people. They also recognize the importance of our employees and our ties to the communities we serve and in which we operate. To that end, we are proud to remain locally managed as we enter this next chapter as committed as ever to our customers, our communities and our employees. I look forward to all we will achieve together.”

  • ALLETE Chair, President, and Chief Executive Officer Bethany Owen

“ALLETE’s management team has done an excellent job leading the company toward a truly sustainable clean- energy future. Together with GIP, we look forward to bringing our sector expertise and long-term capital to support ALLETE’s strong management team as they continue to deliver safe, reliable, affordable energy services to their customers. ALLETE is at the forefront of the clean energy transition and we are thrilled to support the delivery of the company’s ‘Sustainability-in-Action’ strategy, which we believe will generate substantial value both for ALLETE’s customers and CPP contributors and beneficiaries.”

  • James Bryce, Managing Director and Global Head of Infrastructure, CPP Investments

“We are excited to work with Bethany Owen and the full ALLETE team as they continue to supply affordable and reliable energy services. GIP, alongside CPP Investments, look forward to partnering to provide ALLETE with additional capital so they can continue to decarbonize their business to benefit the customers and communities they serve. Bringing together ALLETE, with its demonstrated commitment to clean energy, with GIP, one of the world’s premier developers of renewable power, furthers our commitment to serve growing market needs for affordable, carbon-free and more secure sources of energy.”

  • Bayo Ogunlesi, GIP’s Chairman and Chief Executive Officer