ALLETE Inc. is expanding its interests in the solar energy sector with the acquisition of 100% of the membership interests of distributed solar developer New Energy Equity LLC for approximately $165.5 million, subject to a working capital adjustment.
New Energy Equity, with headquarters in Annapolis, Md., is a distributed solar development company that has successfully completed more than 250 projects across the nation totaling more than 310 MW. New Energy Equity also offers comprehensive solar operations, maintenance and asset management services to its customers through its wholly owned subsidiary, Energy Support Services.
“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 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.