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Pair to buy the US energy firm for US$6.2bn including the assumption of debt
A partnership led by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP) have entered into a definitive agreement to acquire US energy firm Allete.
The sale is for for US$67.00 per share in cash, or US$6.2bn including the assumption of debt.
Allete and its family of companies, which includes regulated utilities and renewable energy companies, are focused on driving the clean-energy transition by expanding renewables, reducing carbon, enhancing grid resiliency, and driving innovation.
Allete chair, president, and chief executive Bethany Owen said: "Our Sustainability-in-Action strategy has secured Allete’s place as a clean-energy leader.
"Through this transaction with CPP Investments and GIP, we will have access to the capital we need while keeping our customers, communities and co-workers at the forefront of all that we do, with continuity of our day-to-day operations, strategy and shared purpose and values.
"CPP Investments and GIP have a successful track record of long-term partnerships with infrastructure businesses, and they recognise the important role our Allete companies serve in our communities as well as our nation’s energy future.
"Together, we will continue to invest in the clean-energy transition and build on our 100 plus-year history of providing safe, reliable, affordable energy to our customers.
"Our ‘Sustainability-in-Action strategy will require focused execution and significant capital.
"Transitioning to a private company with these strong partners will not only limit our exposure to volatile financial markets, it also will ensure Allete has access to the significant capital needed for our planned investments now and over the long term.
"Importantly, CPP Investments and GIP are aligned with ALLETE’s values of safety, integrity, planet and people.
"They also recognise the importance of our employees and our ties to the communities we serve and in which we operate.
"To that end, we are proud to remain locally managed as we enter this next chapter as committed as ever to our customers, our communities and our employees. I look forward to all we will achieve together."
James Bryce, managing director and global head of infrastructure at CPP Investments, said: "Allete’s management team has done an excellent job leading the company toward a truly sustainable clean- energy future.
"Together with GIP, we look forward to bringing our sector expertise and long-term capital to support Allete’s strong management team as they continue to deliver safe, reliable, affordable energy services to their customers.
"Allete is at the forefront of the clean energy transition and we are thrilled to support the delivery of the company’s ‘Sustainability-in-Action’ strategy, which we believe will generate substantial value both for Allete’s customers and CPP contributors and beneficiaries."
GIP’s chairman and chief executive Bayo Ogunlesi said: "We are excited to work with Bethany Owen and the full Allete team as they continue to supply affordable and reliable energy services.
"GIP, alongside CPP Investments, look forward to partnering to provide Allete with additional capital so they can continue to decarbonise their business to benefit the customers and communities they serve.
"Bringing together Allete, with its demonstrated commitment to clean energy, with GIP, one of the world’s premier developers of renewable power, furthers our commitment to serve growing market needs for affordable, carbon-free and more secure sources of energy." |
