TPG in talks to acquire solar firm Altus Power, sources say

Altus Power

23/12/2024 20:13

* 
      Altus shares surge as much as 23% on TPG Rise deal talks
    

        * 
      Altus has been exploring sale since Oct
    

        * 
      Private capital wants power assets amid AI, data center
boom
    

  
 (Adds background and details on Altus, stock reaction)
    By David French
       NEW YORK, Dec 23 (Reuters) - Buyout firm TPG's  TPG.O 
climate investment arm is in talks to acquire Altus Power
 AMPS.N , a provider of solar power to commercial property
owners and residential homes, people familiar with the matter
told Reuters on Monday.
    If the talks between TPG Rise Climate and Altus are
successful, a deal could be signed in the coming weeks, said the
sources, who requested anonymity as the discussions are
confidential. 
    The transaction has yet to be finalized, the sources
cautioned, adding that another suitor could also approach Altus
and that it was possible that no deal with any party would be
reached.
    Shares of Altus surged more than 23% on the news on Monday
before paring some gains, giving the company a market value of
nearly $650 million. Altus also had debt net of cash of about
$1.1 billion as of the end of September. 
    Stamford, Connecticut-based Altus, one of the largest owners
of commercial-scale solar plants in the United States, had said
in October it was working with advisers to explore options
including a potential sale.
    Altus and TPG declined to comment.
    A boom in artificial intelligence and data centers has been
driving power demand higher, making clean energy providers
increasingly attractive to infrastructure investors. 
    Founded in 2009, Altus 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, according to its website.
    As of Friday's close, Altus shares had lost nearly
two-thirds of their value since the company went public in 2021
through a $1.6 billion merger with a blank-check acquisition
firm backed by commercial real estate giant CBRE Group  CBRE.N ,
as it faced increased competition from other clean energy
providers.
    CBRE remains the biggest shareholder in Altus with a 15.38%
stake, according to LSEG data. Blackstone's  BX.N  energy arm,
which provided $350 million in debt financing and committed $300
million in preferred equity as part of the SPAC deal in 2021,
holds a 13.2% stake in Altus.
    In recent quarters, Altus has witnessed an uptick in 
fortunes as it has signed 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 through its Rise Funds, including TPG Rise Climate,
manages $19 billion of assets focused on backing companies that
aim to drive social and environmental impact, according to its
website. 

 (Reporting by David French in New York; Editing by Anirban Sen
and Matthew Lewis)
 ((mailto:Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno;
Reuters Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))