Altus Power to Be Acquired by TPG Rise Climate in $2.2 Billion Deal

The largest commercial-scale solar owner in the US, Altus Power, has agreed to an all-cash acquisition by TPG Rise Climate. The deal values the company at approximately $2.2 billion, including outstanding debt. After the transaction, Altus Power will remove its Class A common stock from the NYSE and become a private company.

The purchase price offers a 66% premium over Altus Power’s closing price on October 15, 2024, before review. The deal comes after a comprehensive strategic review process, assisted by financial and also legal advisors to Altus Power.

Altus Power Acqusition and Growth in Clean Energy

The Altus Power acquisition will help expand clean electricity access, strengthening its service to commercial and Community Solar customers. Additionally, combining TPG Rise Climate's investments with Altus Power's expertise, the company plans to scale to meet rising demand.

Gregg Felton, CEO of Altus Power, said, "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."

He added, "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.

Altus Power secures $100 million credit facility from Goldman Sachs and CPPIB 

Strong Synergies for Long-Term Growth

Christine Detrick, Board Chair of Altus Power, said the Board was pleased to unanimously approve the transaction with TPG Rise Climate. She believed the partnership was a natural fit, with strong synergies that would drive growth and innovation. Detrick noted the Altus Power acquisition would create significant value for stockholders, customers, and employees, ensuring the company’s long-term success.

Altus Power’s Board of Directors unanimously approved the transaction and will recommend stockholders approve the merger at a special meeting. Additionally, the transaction needs approval from most Class A stockholders, with 40% of shares already committed through support agreements.