TPG’s climate investment division is reportedly in negotiations to acquire Altus Power, a company that supplies solar energy to commercial property owners and residential homes, according to a report by Reuters citing sources familiar with the matter.
If the discussions between TPG Rise Climate and Altus reach a successful conclusion, a deal could be finalised in the next few weeks, the unnamed sources said. However, they also cautioned that the deal is not yet complete and noted that another potential bidder could emerge, meaning no agreement may be reached.
Following the news, Altus’ shares rose by over 23% on Monday before settling slightly, bringing the company’s market capitalisation to approximately $650m. As of the end of September, Altus also reported a net debt of around $1.1bn.
Based in Stamford, Connecticut, Altus is one of the largest owners of commercial-scale solar plants in the US. In October, the company revealed it was working with advisors to explore strategic options, including the possibility of a sale.
The rising demand for electricity, driven by sectors like artificial intelligence and data centres, has made clean energy companies more attractive to infrastructure investors.
Altus, which was founded in 2009, operates commercial-scale solar power installations and offers energy storage and electric vehicle charging solutions. Its portfolio currently generates around 1 gigawatt of power.
Since going public in 2021 through a $1.6bn merger with a SPAC backed by CBRE Group, Altus’ stock has lost nearly two-thirds of its value, primarily due to increased competition in the clean energy sector. CBRE remains the largest shareholder in Altus with a 15.38% stake, while Blackstone’s energy division holds 13.2%.
In recent quarters, Altus has seen an improvement in its performance, securing new commercial property clients amid growing demand for renewable energy. For the quarter ending in September, the company reported a 30% increase in revenue, reaching $58.7m, with net profit rising by more than 26% to $8.6m.
