Altus Power, Inc., the largest commercial-scale solar owner in the U.S., has agreed to be acquired by TPG through its TPG Rise Climate Transition Infrastructure strategy. Under the deal, TPG will purchase Altus Power’s Class A common stock for $5.00 per share in an all-cash transaction, valuing the company at approximately $2.2 billion, including debt.
Once the acquisition is complete, Altus Power will become a private company, and its stock will no longer be traded on the New York Stock Exchange. The purchase price represents a 66% premium over Altus Power’s closing stock price on October 15, 2024, before the company announced a strategic review.
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. 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.
He further added, “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. Together with TPG Rise Climate, we believe we are poised to accelerate clean energy adoption and ensure more businesses and communities have access to the power they need for a sustainable future.”
This deal follows a thorough evaluation of strategic options, with guidance from financial and legal advisors. Altus Power believes the partnership will help expand access to clean energy for both commercial and Community Solar customers. By leveraging TPG Rise Climate’s investment resources alongside Altus Power’s expertise in commercial solar, the company aims to accelerate growth and meet rising demand for renewable energy.
Christine Detrick, Board Chair of Altus Power, mentioned “On behalf of the Altus Power Board of Directors, we’re pleased to have unanimously approved this transaction with TPG Rise Climate and believe this partnership is a natural fit, with strong synergies that will drive growth and innovation. This transaction will unlock significant value for our stockholders, customers and employees and we are confident it is in the best interest of the Company’s long-term success.”
Scott Lebovitz, a Managing Partner and Head of Infrastructure for TPG Rise Climate, stated “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.”
“The leadership team’s innovation, commitment to its customers and operational excellence aligns with our investment philosophy. We look forward to supporting Altus Power in its next chapter of growth, providing affordable and sustainable power to businesses and households,” said Steven Mandel, Business Unit Partner in TPG Rise Climate.
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