By David French
NEW YORK (Reuters) – TPG's climate investment arm is in talks to acquire Altus Power, a provider of solar energy to commercial and residential property owners, people familiar with the matter told Reuters on Monday.
If talks between TPG Rise Climate and Altus are successful, a deal could be signed in the coming weeks, said the sources, who requested anonymity because the talks are confidential.
The transaction has yet to be completed, the sources warned, adding that another suitor could also approach Altus and that it was possible that a deal would not be reached with either party.
Shares of Altus jumped more than 23% on the news on Monday before giving up some gains, giving the company a market value of almost $650 million. Altus also had net-of-cash debt of about $1.1 billion at the end of September.
Stamford, Connecticut-based Altus, one of the largest owners of commercial-scale solar power plants in the United States, had said in October it was working with advisors to explore options, including a possible sale.
Altus and TPG declined to comment.
A boom in artificial intelligence and data centers has increased demand for energy, making clean energy providers increasingly attractive to infrastructure investors.
Founded in 2009, Altus operates commercial-scale solar installations and provides energy storage and vehicle charging facilities. According to the website, the company's portfolio currently produces approximately 1 gigawatt of power.
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 company backed by commercial real estate giant CBRE Group, as it faced increasing competition from other clean energy suppliers.
According to LSEG data, CBRE remains Altus' largest shareholder with a 15.38% stake. Blackstone's energy arm, which provided $350 million in debt financing and committed $300 million in preferred stock as part of its 2021 SPAC deal, has a 13.2% stake in Altus.
In recent quarters, Altus has witnessed a rise in fortunes as it attracts new commercial real estate clients amid a surge in demand for renewable energy. For the quarter ended September, Altus posted a 30% increase in revenue to $58.7 million, while net profit rose more than 26% to $8.6 million.
TPG, through its Rise Funds, including TPG Rise Climate, manages $19 billion in assets focused on supporting companies that strive to increase social and environmental impact, according to its website.
(Reporting by David French in New York; Editing by Anirban Sen and Matthew Lewis)
