Clean Energy Provider Altus Power in Talks for Acquisition
Renewable Energy Demand on the Rise
The demand for clean energy is surging, driven by the rapid growth of artificial intelligence and data centers. This increased demand has made companies like Altus Power, a leading provider of solar power to commercial property owners and residential homes, highly attractive to infrastructure investors.
TPG Rise Climate in Talks to Acquire Altus Power
Sources close to the matter have revealed that TPG’s climate investment arm, TPG Rise Climate, is in talks to acquire Altus Power. If successful, the deal could be signed in the coming weeks. However, the transaction is yet to be finalized, and other suitors may still approach Altus.
Altus Power’s Market Value Soars
Following the news, Altus Power’s shares surged over 23% on Monday, giving the company a market value of nearly $650 million. The company also has debt net of cash of about $1.1 billion as of the end of September.
A Leader in Commercial-Scale Solar Plants
Altus Power, founded in 2009, operates commercial-scale solar power installations and provides energy storage and vehicle charging facilities. The company’s portfolio currently produces about 1 gigawatt of power, making it one of the largest owners of commercial-scale solar plants in the United States.
Exploring Options
In October, Altus announced that it was working with advisers to explore options, including a potential sale. The company has faced increased competition from other clean energy providers, leading to a decline in its share value since going public in 2021.
Major Shareholders
CBRE Group, a commercial real estate giant, remains the biggest shareholder in Altus with a 15.38% stake. Blackstone’s energy arm, which provided debt financing and preferred equity as part of the SPAC deal in 2021, holds a 13.2% stake in Altus.
Uptick in Fortunes
In recent quarters, Altus has witnessed an uptick in fortunes, signing new commercial property customers amid a surge in demand for renewable energy. For the quarter ended September, Altus posted a 30% jump in revenue to $58.7 million, with net profit up more than 26% to $8.6 million.
TPG Rise Climate’s Focus on Social and Environmental Impact
TPG Rise Climate, through its Rise Funds, manages $19 billion of assets focused on backing companies that aim to drive social and environmental impact. The potential acquisition of Altus Power aligns with TPG Rise Climate’s mission to support companies that promote sustainability and reduce carbon emissions.
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