Altus Power Closes Transaction with TPG

Rhea-AI Summary

Altus Power (NYSE: AMPS), a commercial-scale clean electric power provider, has completed its acquisition by TPG through its TPG Rise Climate Transition Infrastructure strategy. The all-cash transaction valued Altus at approximately $2.2 billion, including outstanding debt.

Under the transaction terms, Altus Power stockholders will receive $5.00 in cash per share of Class A common stock. The deal, initially announced on February 6, 2025, received stockholder approval on April 9, 2025. Following the completion, Altus Power has become a privately-held company, with its Class A common stock ceasing trading on April 16, 2025, and being delisted from the NYSE.

Positive

• All-cash transaction providing immediate liquidity to shareholders
• Strategic partnership with TPG to accelerate growth and scale operations
• Transaction received unanimous shareholder approval

Negative

• Delisting from NYSE reduces public trading liquidity
• Termination of public reporting obligations decreases transparency
• Going private may limit future access to public capital markets

Insights

M&A Financial Analyst

Altus Power's acquisition by TPG represents a $2.2 billion transaction including debt that transitions the company from public to private ownership. The $5.00 per share all-cash consideration delivers minimal premium over recent trading ($4.99), suggesting either market anticipation had already priced in the deal or upside potential in public markets.

This transaction structure provides certainty for shareholders amid renewable energy sector volatility, though the negligible premium (0.2%) falls significantly below typical acquisition premiums of 20-30%. The all-cash nature eliminates shareholder exposure to potential integration risks while providing immediate liquidity.

From a structural perspective, the deal has completed all necessary milestones - announcement (February 6), stockholder approval (April 9), and final closing (April 16). The delisting from NYSE and termination of SEC reporting obligations completes Altus Power's transition to private status.

TPG's acquisition through its climate-focused investment vehicle signals continued institutional interest in commercial-scale clean energy infrastructure despite recent market challenges. For TPG, this represents a significant addition to its renewable portfolio, acquiring a platform with established commercial-scale solar operations.

Renewable Energy Infrastructure Specialist

TPG's acquisition of Altus Power demonstrates strategic positioning in the distributed energy resources sector at a pivotal market moment. As grid constraints increasingly impact power delivery, Altus Power's focus on "grid-enhancing solutions" in capacity-constrained locations represents valuable infrastructure positioning.

The privatization structure removes quarterly performance pressures, potentially allowing for longer investment horizons critical in infrastructure development. Under private ownership, Altus can potentially accelerate deployment timelines and pursue market opportunities that might have produced earnings volatility in public markets.

CEO Felton's emphasis on delivering clean energy "faster and at greater scale" suggests TPG sees significant expansion potential, likely leveraging Altus's existing customer relationships and development pipeline. The transaction transforms Altus from a publicly-traded developer into a privately-backed platform with potentially greater access to deployment capital.

For the broader commercial solar sector, this acquisition signals institutional validation of the distributed generation model, particularly as electricity demand growth accelerates from electrification and AI computing. However, the minimal acquisition premium suggests valuations remain constrained compared to historical levels, reflecting ongoing challenges with interconnection timelines and rising capital costs.

STAMFORD, Conn.--(BUSINESS WIRE)-- Altus Power, Inc. (“Altus Power” or the “Company”) (NYSE: AMPS), a leading commercial-scale provider of clean, electric power, today announced the completion of its acquisition by TPG through its TPG Rise Climate Transition Infrastructure strategy in an all-cash transaction that valued the Company at approximately $2.2 billion, including outstanding debt. As a result of the transaction, Altus Power is now a privately-held company.

“The successful close of this transaction marks a pivotal moment for Altus Power, our stockholders, employees and partners. By partnering with TPG Rise Climate Transition Infrastructure, who shares our long-term vision for the future of clean energy, we believe we are unlocking significant value for our stockholders and accelerating our long-term growth strategy,” said Gregg Felton, CEO of Altus Power. “As demand for power continues to rise, businesses, utilities and communities are desperate for scalable, grid-enhancing solutions that generate incremental power in locations where it’s needed. We expect this partnership to strengthen our ability to deliver clean energy faster and at greater scale, positioning Altus to lead the next phase of clean energy expansion.”

Under the terms of the transaction, Altus Power stockholders will receive $5.00 in cash, without interest and minus any applicable withholding taxes, for each share of Altus Power Class A common stock owned immediately prior to the closing of the transaction. The transaction was initially announced on February 6, 2025, and received approval from the Company’s stockholders on April 9, 2025. As a result of completion of the transaction, the Company’s Class A common stock ceased trading prior to the opening of trading on April 16, 2025 and will be removed from listing on the New York Stock Exchange. With the delisting from the New York Stock Exchange, Altus Power also intends to terminate the registration of its Class A common stock and suspend its reporting obligations under the Securities Exchange Act of 1934.

Advisors

Moelis & Company LLC is acting as financial advisor to Altus Power and Latham & Watkins LLP is acting as legal counsel to Altus Power. PJT Partners is acting as financial advisor to TPG Rise Climate and Kirkland & Ellis LLP is acting as legal counsel to TPG Rise Climate.

About Altus Power

Altus Power, based in Stamford, Conn., is a leading commercial-scale provider of clean electric power serving commercial, industrial, public sector and Community Solar customers with end-to-end solutions. Altus Power originates, develops, owns and operates locally sited solar generation, energy storage and charging infrastructure across the nation. Visit www.altuspower.com to learn more.

About TPG Rise Climate

TPG Rise Climate is the dedicated climate investing platform of TPG, a leading global alternative asset management firm. With dedicated pools of capital across private equity, transition infrastructure, and the Global South, TPG Rise Climate pursues climate-related investments that benefit from the diverse skills of TPG’s investing professionals around the world, the strategic relationships and insights developed across TPG’s broad portfolio of climate companies, and a global network of executives, advisors, and corporate partners. As part of TPG’s $27 billion global impact investing platform, TPG Rise Climate invests broadly across the climate sector, with a focus on building and scaling leading climate solutions across the following thematic areas: clean electrons, clean molecules and materials, and negative emissions.

For more information, please visit www.therisefund.com/tpgriseclimate.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250416079847/en/

Media Contact:

Altus Power

Jenny Volanakis

mediarelations@altuspower.com

Source: Altus Power, Inc.

FAQ

What is the acquisition value of Altus Power (AMPS) by TPG?

TPG acquired Altus Power in an all-cash transaction valued at approximately $2.2 billion, including outstanding debt.

How much will AMPS shareholders receive per share in the TPG acquisition?

Altus Power shareholders will receive $5.00 in cash per share of Class A common stock.

When did Altus Power (AMPS) stock stop trading on the NYSE?

Altus Power's Class A common stock ceased trading prior to market opening on April 16, 2025, and will be delisted from the NYSE.

When did shareholders approve the Altus Power-TPG acquisition?

Altus Power shareholders approved the acquisition on April 9, 2025.