Altus Power, which is the largest owner of commercial-scale solar in the US, announced it entered into a definitive agreement to be acquired by TPG through its TPG Rise Climate Transition Infrastructure strategy for $5 per share of its Class A common stock in an all-cash deal that values the company at about $2.2 billion, including outstanding debt.
Upon the completion of the deal, Altus Power’s Class A common stock will no longer be listed or traded on the New York Stock Exchange and will become a privately held company.
This purchase price represents a 66% premium to Altus Power’s unaffected closing price on October 15, 2024, the last trading day before the company announces a formal review of strategic alternatives by its Board of Directors. This deal is the culmination of a comprehensive review of opportunities available to Altus Power, with the assistance of the Company’s financial and legal advisors.
Altus Power expects this partnership to strengthen its ability to deliver greater value to commercial and Community Solar customers by expanding access to clean electric power. And by combining TPG Rise Climate’s investment capabilities with Altus Power’s domain expertise in commercial-scale solar, Altus Power believes it will be able to scale its operations more rapidly to meet the surging demand for increased power generation.
The Altus Power Board of Directors unanimously approved the deal and intends to recommend that Altus Power stockholders vote to adopt the merger agreement at a Special Meeting of Stockholders.
The deal is conditioned upon the approval of the holders of at least a majority of the outstanding shares of Class A common stock of Altus Power, who are entitled to vote to adopt the merger agreement to the deal. Stockholders representing approximately 40% of Altus Power’s Class A common stock, including funds managed by Blackstone Credit and Insurance and a subsidiary of CBRE Group, Inc., have entered into voting and support agreements to favor the deal.
The deal is expected to be completed in the second quarter of 2025, subject to the approval of Altus Power stockholders and the satisfaction of other customary closing conditions, including regulatory approvals. It is not subject to a financing condition.
Altus Power expects to maintain its headquarters in Stamford, Connecticut.
Moelis & Company is acting as Altus Power’s financial advisor, and Latham & Watkins is acting as its legal counsel. PJT Partners is acting as TPG Rise Climate’s financial advisor and Kirkland & Ellis is acting as its legal counsel.
KEY QUOTES:
“This transaction represents a pivotal moment for Altus Power. 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. This partnership strengthens our ability to serve both our Community Solar and commercial clients with clean electric power at a time when demand for power 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. Together with TPG Rise Climate, we believe we are poised to accelerate clean energy adoption and ensure more businesses and communities have access to the power they need for a sustainable future.”
- Gregg Felton, CEO of Altus Power
“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. This transaction will unlock significant value for our stockholders, customers and employees and we are confident it is in the best interest of the company’s long-term success.”
- Christine Detrick, Board Chair of Altus Power
“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.”
- Scott Lebovitz, a Managing Partner and Head of Infrastructure for TPG Rise Climate
“The leadership team’s innovation, commitment to its customers and operational excellence aligns with our investment philosophy. We look forward to supporting Altus Power in its next chapter of growth, providing affordable and sustainable power to businesses and households.”
- Steven Mandel, Business Unit Partner in TPG Rise Climate
