Allete, Inc. (ALE) announced on Monday that a partnership led by the Canada Pension Plan Investment Board also known as CPP Investments and Global Infrastructure Partners or GIP will acquire all outstanding common shares of Allete at $67.00 per share in cash, valuing the company at around $6.2 billion, including its net debt.
The deal includes commitments to retain the workforce, sustain compensation levels, maintain benefits programs, and honor union contracts.
The company also stated that the acquisition is not expected to impact retail or municipal rates for utility customers.
"Our 'Sustainability-in-Action' strategy will require focused execution and significant capital. Transitioning to a private company with these strong partners will not only limit our exposure to volatile financial markets...," said Allete CEO Bethany Owen, commenting on the deal.
Post-acquisition, Allete's Minnesota Power and Superior Water, Light, and Power will continue to be regulated by the Minnesota Public Utilities Commission, the Public Service Commission of Wisconsin, and the Federal Energy Regulatory Commission.
The acquisition is set to be completed in mid-2025, subject to approval from Allete's shareholders, regulatory approvals, and other customary closing conditions.
Furthermore, Allete will remain locally managed and operated, with its headquarters staying in Duluth, Minnesota.
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