ALLETE announced it has signed a definitive agreement to acquire 100% of the membership interests of New Energy Equity for approximately $165.5 million, subject to a working capital adjustment.
New Energy Equity, with headquarters in Annapolis, Maryland, has completed more than 250 projects across the nation totaling more than 310 MW. The company also offers comprehensive solar operations, maintenance and asset management services to its customers through its wholly owned subsidiary, Energy Support Services. Solar Power World ranked New Energy Equity as the nation’s 7th Top Solar Developer and 8th Top Commercial Solar Contractor in 2021.
“New Energy Equity’s strong track record of success, talented and experienced team, robust project pipeline and significant growth potential will support ALLETE’s long-term average annual growth objective of 5% to 7%,” said ALLETE chair, president and CEO Bethany Owen. “The company is a natural fit with our sustainability-in-action strategy and shares our commitment to transforming the nation’s energy landscape. Solar is an exciting and expanding area of our industry’s clean-energy transformation, and New Energy Equity brings to ALLETE the expertise and experience to offer comprehensive solar solutions to customers, adding to our existing wind energy capabilities.”
Also included in the deal is Impact Power Solutions (IPS Solar), which was acquired by New Energy Equity just before the ALLETE acquisition. IPS Solar will retain its branding and corporate headquarters in Roseville, Minnesota, while now being in the ALLETE family.
IPS Solar chief development officer and co-owner of IPS Solar Eric Pasi said, “We are set to enter a new phase of growth. This partnership will allow our companies to dramatically expand the work we’ve already started, increasing access to clean energy for all Americans.”
ALLETE expects the purchase to close in mid-April upon satisfaction of customary closing conditions, including compliance with Hart-Scott-Rodino antitrust clearing requirements. New Energy Equity’s entire team, including management, will remain in place, as will its Maryland headquarters.
J.P. Morgan acted as exclusive financial advisor to ALLETE on this transaction.
News item from ALLETE