ALLETE Inc. expands its interest in solar energy by purchasing 100% of New Energy Equity LLC’s membership interests for approximately $165.5 Million. This transaction is subject to a working capital adjustment.
New Energy Equity is a distributed solar development firm based in Annapolis. The company has completed more then 250 projects across the country totaling more 310 MW. Through its wholly-owned subsidiary, Energy Support Services (New Energy Equity), it offers comprehensive services in solar operations, maintenance, asset management, and asset management to its customers.
“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 percent to 7 percent,” says Bethany Owen, ALLETE’s chair, president and CEO. “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.”
“Our team is excited to join the ALLETE family of companies, bringing broadened expertise and access to capital to New Energy Equity,” comments Matthew Hankey, New Energy Equity’s president and CEO. “ALLETE is an incredible organization that shares in our company’s core values, including a focus on sustainability, long-term partnerships and a workforce culture that promotes and values employee contributions. With our combined experience, we can expand the reach of distributed-generation solar and storage projects to provide more sustainable energy solutions for our communities, industry partners and customers.”
ALLETE expects that the purchase will close in mid April after satisfying all customary closing conditions, which include 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 was the exclusive financial advisor to ALLETE in this transaction.