Allete, Inc. announced on Monday its acquisition by a partnership formed by the Canada Pension Plan Investment Board, also known as CPP Investments, and Global Infrastructure Partners or GIP. The partnership plans to purchase all outstanding common shares of Allete at $67.00 per share in cash, placing the energy company's value around $6.2 billion, inclusive of its net debt.
The agreement assures that the workforce will be retained, features stipulations to uphold compensation levels and benefits programs, and maintains respect for union contracts. Moreover, Allete affirmed that the acquisition would not affect retail or municipal prices for utility customers.
In the words of Allete CEO Bethany Owen, the company's 'Sustainability-in-Action' strategy would require focused execution and significant capital, and becoming a private entity in partnership with CPP Investments and GIP will help limit exposure to unpredictable financial markets.
After the acquisition, both Allete's Minnesota Power and Superior Water, Light, and Power will still be regulated by the Minnesota Public Utilities Commission, the Public Service Commission of Wisconsin, and the Federal Energy Regulatory Commission.
Completion of the acquisition is expected by mid-2025, contingent on the approval of Allete's shareholders, regulatory sanctions, and other standard closing conditions.
Additionally, Allete will continue to be locally managed and operated, retaining its headquarters in Duluth, Minnesota.
