Altus Power, an independent developer, owner, and operator of commercial-scale solar facilities, announced it has entered into a definitive agreement to be acquired by TPG, a global alternative asset management firm, through its TPG Rise Climate transition infrastructure strategy for $5 per share of its Class A common stock.
The all-cash transaction values the company at approximately $2.2 billion, including its outstanding debt. Upon completion of the transaction, Altus Power’s Class A common stock will no longer be listed or traded on the New York Stock Exchange, and Altus Power will become a privately held company.
Altus Power expects this partnership to help expand its operations more rapidly to meet the surging demand for increased power generation. Post acquisition, the company expects to maintain its headquarters in Stamford, Connecticut.
Moelis & Company is acting as financial advisor to Altus Power and Latham & Watkins is acting as legal counsel to Altus Power. PJT Partners is acting as financial advisor to TPG Rise Climate and Kirkland & Ellis is acting as legal counsel to TPG Rise Climate.
“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,” said Scott Lebovitz, a Managing Partner and Head of Infrastructure for TPG Rise Climate.
Completion of the transaction is expected 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. The transaction is not subject to a financing condition.
According to Mercom’s Annual and Q4 2024 Solar Funding and M&A report, M&A activity was 15% lower YoY in 2024, with 82 corporate M&A transactions compared to 96 in 2023.
In January, Octopus Energy Generation, a renewable investment company, acquired agrivoltaics developer OX2 France from OX2 AB. The acquisition was made through Octopus’ Sky fund, marking its first investment into a French developer.
