Altus Power to Be Acquired by TPG in New Agreement
Altus Power, Inc. (“Altus Power” or the “Company”), the largest owner of commercial-scale solar in the U.S., has announced that it has entered into a definitive agreement to be acquired by TPG through its TPG Rise Climate Transition Infrastructure strategy. The transaction, valued at approximately $2.2 billion, including outstanding debt, will be executed as an all-cash deal at $5.00 per share of Class A common stock.
Strategic Impact of the Acquisition
This acquisition represents a significant shift for Altus Power as it transitions from a publicly traded company to a privately held entity under TPG’s ownership. Upon completion, the Company’s Class A common stock will no longer be listed or traded on the New York Stock Exchange. The purchase price reflects a substantial 66% premium over Altus Power’s closing price on October 15, 2024, the day before the Company announced a formal review of strategic alternatives by its Board of Directors.
The decision to go private follows an extensive evaluation of strategic opportunities with financial and legal advisors. The acquisition is expected to enhance Altus Power’s capacity to provide greater value to commercial and Community Solar customers while facilitating the expansion of clean electric power access. By leveraging TPG Rise Climate’s investment resources and Altus Power’s expertise in commercial-scale solar, the Company aims to scale operations more rapidly to meet rising energy demands.
Leadership and Vision
Gregg Felton, CEO of Altus Power, emphasized the transformative nature of the deal: “This transaction represents a pivotal moment for Altus Power. Partnering with TPG Rise Climate aligns with our mission to become the leading provider of commercial-scale clean electric power across the U.S. TPG Rise Climate’s expertise in clean energy, investment-driven approach, and commitment to sustainable infrastructure development will accelerate our ability to serve businesses and households nationwide. As a private company, Altus Power will be better positioned for long-term growth, fostering innovation and delivering enhanced value to customers. Together, we will drive the widespread adoption of clean energy and ensure businesses and communities have access to sustainable power solutions.”
Altus Power Board Chair Christine Detrick also highlighted the benefits of the acquisition: “On behalf of the Altus Power Board of Directors, we are pleased to have unanimously approved this transaction with TPG Rise Climate. The partnership represents a natural fit, combining complementary strengths that will fuel growth and innovation. This deal unlocks significant value for stockholders, customers, and employees, positioning Altus Power for long-term success.”
TPG Rise Climate’s Perspective
Scott Lebovitz, Managing Partner and Head of Infrastructure for TPG Rise Climate, expressed confidence in the partnership: “We are excited to collaborate with Altus Power, a recognized leader in commercial-scale clean power solutions with an outstanding track record of growth. The leadership team’s innovation, commitment to customers, and operational excellence align with our investment philosophy.”
Steven Mandel, Business Unit Partner at TPG Rise Climate, added: “Our goal is to support Altus Power as it enters its next phase of growth. We believe the company has the potential to significantly expand its clean energy offerings, making affordable and sustainable power accessible to more businesses and households.”
Regulatory Approvals and Timeline
The acquisition agreement has received unanimous approval from Altus Power’s Board of Directors, which will recommend that stockholders vote in favor of the deal at a Special Meeting of Stockholders.
The transaction is contingent upon approval from holders of at least a majority of the outstanding shares of Class A common stock. Currently, stockholders representing approximately 40% of Altus Power’s Class A shares, including funds managed by Blackstone Credit and Insurance and a subsidiary of CBRE Group, Inc., have entered into voting and support agreements backing the transaction.
Completion of the acquisition is anticipated in the second quarter of 2025, pending stockholder approval and the fulfillment of customary regulatory and closing conditions. Notably, the deal is not subject to a financing condition, reducing potential risks and streamlining the approval process.
Industry Context and Future Prospects
The acquisition of Altus Power by TPG Rise Climate underscores the growing investor interest in renewable energy infrastructure. As global demand for clean energy rises, institutional investors are seeking opportunities to deploy capital into scalable, commercially viable renewable energy assets.
For Altus Power, the partnership with TPG Rise Climate represents an opportunity to accelerate its strategic initiatives in community solar and commercial-scale solar deployment. The transition to private ownership is expected to provide operational flexibility, allowing the Company to pursue long-term projects without the short-term pressures associated with public markets.
Moreover, with access to TPG’s financial resources and network, Altus Power is well-positioned to expand its footprint, innovate within the clean energy sector, and contribute to the broader decarbonization efforts. The integration of TPG Rise Climate’s expertise and Altus Power’s solar capabilities could set a precedent for further consolidation and investment in the renewable energy industry.
