Kirkland & Ellis LLP-advised TPG has agreed to acquire Latham & Watkins LLP-guided Altus Power in a deal valuing the Stamford, Connecticut-based solar energy provider at approximately $2.2 billion, including debt, Altus announced Thursday.

TPG, executing the purchase through its TPG Rise Climate Transition Infrastructure strategy, will pay $5 per share of Altus' Class A common stock in the all-cash transaction.

A 66% Premium Boosts Altus Stock

The agreed price represents a 66% premium over Altus Power’s unaffected closing price on Oct. 15, the day before its board initiated a strategic review. Following the announcement, Altus shares surged more than 28% to $4.92 per share on Thursday morning.

The acquisition follows a thorough review conducted with the assistance of Latham & Watkins LLP and financial adviser Moelis & Co. LLC, Altus confirmed. PJT Partners served as the financial adviser to TPG on the transaction.

Scaling Clean Energy with TPG’s Backing

Altus Power, which owns and operates solar generation, energy storage, and charging infrastructure, said TPG's financial backing will accelerate its expansion to meet the increasing demand for clean energy solutions.

"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," said Gregg Felton, CEO of 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."

The transaction is expected to close in Q2 2025, subject to Altus stockholder and regulatory approvals.

TPG Sees Strong Growth Potential in Altus Power

Scott Lebovitz, head of infrastructure for TPG Rise Climate, praised Altus Power as “a leader in commercial-scale clean power solutions with an exceptional track record of growth.”

Steven Mandel, business unit partner at TPG Rise Climate, echoed this sentiment, stating that TPG looks forward to supporting Altus in its next phase of growth, providing sustainable and cost-effective power solutions to businesses and households.

Legal Advisors on the Deal

Paul Weiss Rifkind Wharton & Garrison LLP is providing antitrust counsel to TPG, with a legal team including partners Annie Herdman and Marta P. Kelly.

On Altus Power’s side, Latham & Watkins LLP’s team is led by partners Ryan Maierson and Rachel Ratcliffe Payne, along with Keith Halverstam, Jim Cole, Michelle Carpenter, Craig Kornreich, Jeffrey Tochner, Jason Cruise, Joshua Marnitz, Natasha Gianvecchio, and Daniel Sinaiko.

Details of the Kirkland & Ellis LLP team advising TPG were not immediately available.

With the TPG $2.2B Altus Power Purchase, the private equity giant is making a significant push into the clean energy market, positioning itself as a key player in the transition to sustainable power solutions.