TPG agrees to take Altus Power private in $2.2B deal

Global asset manager TPG, through its TPG Rise Climate Transition Infrastructure fund, is acquiring U.S. renewables firm Altus Power for $2.2 billion in cash and assumed debt. TPG will pay $5.00/share, a 66% premium to Altus’ unaffected closing price on Oct. 15—the last session prior to its announcement of a formal review of strategic alternatives. Upon closing, expected in Q2, Altus shares will no longer be listed on the NYSE and it will become a privately held company.

Altus said it is the largest current owner of commercial-scale solar in the U.S. The company has just over 1 GW of capacity, according to its 3Q24 investor presentation, which generated 333 GWh during the quarter. A combined 65% of the capacity is concentrated in New York, New Jersey, Massachusetts and California. The company aims to grow capacity to 1.5-2.0 GW by 2026, which it estimates will generate $270-350 million of annual revenue and $160-180 million of adjusted EBITDA.

“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,” Altus CEO Gregg Felton said. “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.”

Moelis & Co LLC is serving as Altus’ financial advisor with Latham & Watkins as legal advisor. TPG Rise Climate’s financial advisor is PJT Partners and its legal counsel is Kirkland & Ellis LLP.