A consortium of buyers has announced plans to privatize Minnesota-based utility company Allete in a transaction pegged at $6.2 billion. The move marks a major step in the recent surge of interest and investment within the clean energy sector, much of which has been greatly propelled by the Inflation Reduction Act.
The consortium in question is led by Global Infrastructure Partners, an international investment management firm, and CPP Investments, one of Canada’s largest pension funds. The two received legal counsel from the law firms, Kirkland & Ellis and Latham & Watkins. Their respective teams of corporate partners included Melissa Kalka, Emily Lichtenheld, Andy Calde, David Allinson and David Beller.
Serving as the legal advisor for Allete was Skadden, Arps, Slate, Meagher & Flom. The firm assigned M&A partners Pankaj Sinha and Emily Prezioso Walsh to conduct what has become an ever more complex and consequential task amidst the evolving landscape of the global energy market.
Allete, whose principal business is in electric utilities, has also been developing and expanding its clean energy portfolio in Superior, Wisconsin, positioning itself well for this new surge of investment.
Driven by an allocation of credits under the Inflation Reduction Act, several domestic initiatives aimed at accelerating the energy transition, such as the production of solar panels, wind turbines and electric vehicles, have taken a front seat in the investment plans of leading utility companies and invesment firms.
For more detailed insights on the transaction, visit this Bloomberg Law report.