Commercial solar provider Altus Power acquired for $2.2 billion

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Commercial-scale solar provider Altus Power was acquired by TPG through its Rise Climate Transition strategy firm. The company was purchased in an all-cash transaction at $5.00 per share of Class A common stock for a total of $2.2 billion.

Upon completion of the transaction, Altus Power will no longer be listed or traded on the New York Stock Exchange, becoming a privately-held company.

The purchase price represents a 66% premium to Altus Power’s unaffected closing price on October 15, 2024, the last trading day prior to the company’s announcement of a formal review of strategic alternatives by its board of directors.

“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,” said Gregg Felton, chief executive officer, Altus Power.

Altus Power’s board of directors unanimously approved the transaction, and said it recommends shareholders adopt the merger agreement with respect to the transaction at a special meeting of stockholders.

The transaction is conditioned upon approval of the holders of at least a majority of the outstanding shares of Class A common stock of Altus Power entitled to vote to adopt the merger agreement.

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 in favor of the transaction, said the company.

The transaction is expected to close in the second quarter of 2025. Altus Power expects to maintain its headquarters in Stamford, Connecticut.

Moelis & Company LLC is acting as financial advisor to Altus Power and Latham & Watkins LLP is acting as legal counsel to Altus Power. PJT Partners is acting as financial advisor to TPG Rise Climate and Kirkland & Ellis LLP is acting as legal counsel to TPG Rise Climate.

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