Allete to be acquired by CPP Investment and Global Infrastructure Partners

The Canada Pension Plan Investment Board and Global Infrastructure Partners have agreed to terms with Allete to acquire the Minnesota-based energy company.

The two organizations will acquire Allete for $67 per share in cash, or $6.2 billion including the assumption of debt.

Allete is a leading energy company with a family of companies that includes regulated utilities and renewable energy companies.

“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,” Allete Chair, President, and CEO Bethany Owen said. “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. 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.”

CPP Investments and GIP are premier infrastructure investors at a global scale. Together, they bring over four decades of experience investing in large-scale infrastructure businesses across sectors to support sustainable, long-term growth.

“Allete’s management team has done an excellent job leading the company toward a truly sustainable clean- energy future. 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,” James Bryce, managing director and global head of infrastructure, CPP Investments, said.

Under the terms of the merger agreement, several commitments have been made by CPP Investments and GIP to align with Allete’s purpose, culture and values. These include:

• Retaining Workforce: The agreement provides commitments with respect to workforce retention, as well as maintaining compensation levels and benefits programs. The agreement also honors union contracts including our strong partnership with the International Brotherhood of Electrical Workers.
• Maintaining Current Headquarters and Leadership: Allete’s Minnesota Power and Superior Water, Light and Power (SWL&P) will continue as independently operated, locally managed, regulated utilities. Bethany Owen will continue as CEO, and the current management team will continue to lead Allete and remain as the primary points of contact for customers, regulators and other stakeholders. Allete will continue to be headquartered in Duluth, Minnesota.
• Contributing to Community: Allete and its family of businesses and the Minnesota Power Foundation will continue to make economic and charitable contributions in its service territories to support vibrant and sustainable communities, close opportunity gaps, and help people of all ages live with purpose and passion.

Further, all Allete companies will remain committed to advancing a clean-energy future, through solar, wind, storage and transmission infrastructure and achieving carbon-free goals of the respective states in which the companies operate.

The acquisition was unanimously approved by Alleteʻs board and is expected to close in mid-2025, subject to regulatory and shareholders approvals.