Duluth-based Allete agrees to $6.8 billion investment partnership – Duluth News Tribune
DULUTH — Allete, the parent company of Minnesota Power and Superior, Water, Light and Power, announced Monday that the company has agreed to be acquired by a partnership between the Canada Pension Plan Investment Board and Global Infrastructure Partners.
The sale price was announced at $6.2 billion, or $67 per share. The stock had been priced at $64.47 before trading opened Monday.
The sale comes months after speculation first surfaced on Wall Street that Allete officials had been searching for a suitor.
Allete officials said the company, which would go from publicly traded to a privately owned firm, will remain headquartered in Duluth.
The acquisition was unanimously approved by Allete’s board of directors and is expected to close in mid-2025. It is subject to approval by Allete shareholders, regulatory agencies, including the Federal Energy regulatory Commission, and other customary financial closing conditions.
Other highlights the company unveiled Monday morning include promising that the new company would honor all union contacts and labor agreements.
The Minnesota Power and Superior, Water, Light and Power subsidiaries of Allete would remain regulated utilities in Minnesota and Wisconsin. In addition to the two local utilities, Alette also owns several wind-generating, hydropower-generating, electrical transmission lines and other energy assets. The company has focused in recent years on transitioning away from coal-fired power plants to a mix of hydro, wind, solar and gas-power electrical generation.
Steve Kuchera / File / Duluth Media Group
“Our ‘Sustainability-in-Action’ strategy has secured Allete’s place as a clean-energy leader. Through this transaction with CPP Investments and GIP, we will have access to the capital we need while keeping our customers, communities and co-workers at the forefront of all that we do, with continuity of our day-to-day operations, strategy and shared purpose and values,” said Bethany Owen, Allete chief executive officer, in a statement Monday morning.
“CPP Investments and GIP have a successful track record of long-term partnerships with infrastructure businesses, and they recognize the important role our Allete companies serve in our communities as well as our nation’s energy future,” the statement read. “Together, we will continue to invest in the clean-energy transition and build on our 100 plus-year history of providing safe, reliable, affordable energy to our customers.”
Allete called the Canadian Pension Plan Investment Board and Global Infrastructure Partners “premier, well-resourced infrastructure investors at a global scale with deep industry expertise and long-term outlooks.”
“Together, they bring over four decades of experience investing in large-scale infrastructure businesses across sectors to support sustainable, long-term growth,” the statement read.
“Allete’s management team has done an excellent job leading the company toward a truly sustainable clean-energy future,” said James Bryce, managing director and global head of infrastructure, CPP Investments. “Together with GIP, we look forward to bringing our sector expertise and long-term capital to support Allete’s strong management team as they continue to deliver safe, reliable, affordable energy services to their customers.”
Canada Pension Plan Investment Board is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. The plan had $591 billion (Canadian) in assets as of Dec. 31.
Global Infrastructure Partners has approximately $112 billion in assets under management, annual revenues of approximately $73 billion and employs over 115,000 people. It is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors.
Headquartered in New York, GIP has offices in Brisbane, Dallas, Hong Kong, London, Melbourne, Mumbai, Singapore, Stamford and Sydney.
This is a developing story. Check back for updates.
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