ALLETE, Inc., a leading U.S. energy provider, has entered into a definitive agreement to be acquired by a partnership led by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). The all-cash transaction, valued at $6.2 billion including debt, positions ALLETE for a future focused on clean energy and grid modernization. The acquisition highlights Global Infra Partners’ growing investment in sustainable infrastructure.
Global Infra Partners and CPP Investments: A Strategic Partnership for ALLETE’s Future
Global Infra Partners (GIP), in partnership with CPP Investments, will acquire ALLETE for $67.00 per share, representing a significant premium to its pre-announcement trading price. This strategic partnership provides ALLETE with access to substantial capital, enabling the company to accelerate its “Sustainability-in-Action” strategy. This strategy focuses on expanding renewable energy sources, reducing carbon emissions, enhancing grid resilience, and driving innovation in the energy sector. The involvement of Global Infra Partners underscores the firm’s commitment to investing in companies driving the energy transition.
GIP and CPP Investments bring extensive experience in infrastructure investment and a long-term perspective aligned with ALLETE’s vision for a sustainable energy future. Their combined expertise and financial resources will support ALLETE’s continued investment in clean energy infrastructure and grid modernization projects. This acquisition by Global Infra Partners represents a significant investment in the future of clean energy.
ALLETE’s Commitment to Stakeholders Remains Unchanged
Despite the change in ownership, ALLETE’s commitment to its employees, customers, and communities remains steadfast. The agreement includes provisions for workforce retention, maintaining compensation and benefits programs, and honoring existing union contracts. ALLETE’s headquarters will remain in Duluth, Minnesota, and its current management team, led by CEO Bethany Owen, will continue to oversee operations. This ensures continuity in leadership and a continued focus on serving local communities under the ownership of Global Infra Partners.
Regulatory Approvals and Expected Closing
The transaction is subject to approval by ALLETE shareholders, regulatory bodies including the Minnesota Public Utilities Commission (MPUC), the Public Service Commission of Wisconsin (PSCW), and the Federal Energy Regulatory Commission (FERC), as well as other customary closing conditions. The acquisition is expected to close in mid-2025. The regulatory review process will ensure the acquisition aligns with the public interest and Global Infra Partners’ commitment to responsible investment.
Continued Focus on Clean Energy Goals
ALLETE’s clean energy goals will remain a top priority under the new ownership structure. The company’s commitment to expanding solar, wind, and energy storage infrastructure, along with achieving carbon reduction targets, will continue to drive its operations. This commitment to sustainability aligns with Global Infra Partners’ investment philosophy.
Conclusion: A Transformative Partnership for a Sustainable Future
The acquisition of ALLETE by the partnership led by CPP Investments and Global Infra Partners represents a significant milestone in the company’s journey towards a clean energy future. With access to substantial capital and the support of experienced infrastructure investors, ALLETE is well-positioned to accelerate its sustainability initiatives, modernize its grid infrastructure, and continue delivering reliable and affordable energy to its customers. The acquisition highlights the growing role of firms like Global Infra Partners in driving the global transition to sustainable energy.
