CPPIB Acquiring Pattern Energy Group

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Canada Pension Plan Investment Board (CPPIB) is acquiring Pattern Energy Group Inc., a large independent power company that owns a portfolio of 28 renewable energy projects in the U.S., Canada and Japan.

Pattern Energy’s wind and solar power developments represent a total operating capacity of 4.4 GW.

“Pattern Energy is one of the most experienced renewables developers in North America and Japan, with a high-quality, diversified portfolio of contracted operating assets, aligning well with CPPIB’s renewable energy investment strategy and the increasing global demand for low-carbon energy,” says Bruce Hogg, CPPIB’s managing director and head of power and renewables.

CPPIB and Riverstone Holdings LLC have concurrently entered into an agreement whereby CPPIB and Riverstone will combine Pattern Energy and Pattern Development under common ownership, bringing together the operating assets of Pattern Energy with the development projects and capabilities of Pattern Development.

The Pattern Energy management team, led by Mike Garland, will lead the combined enterprise.

“We have long been believers in Pattern Energy and have had a successful partnership with the company since we first invested in it more than 10 years ago,” said Chris Hunt and Alfredo Marti, partners at Riverstone. “We have worked closely with Mike and the Pattern Energy team to grow the company from a development startup into a multinational operator and supplier of low cost, renewably sourced energy. We are confident the team will continue to develop world-class wind and solar assets, which will be an important part of our transition to cleaner forms of power generation. We look forward to continuing to support them in driving the company’s next phase of development.”

CPPIB is acquiring Pattern Energy in an all-cash transaction for $26.75 per share, implying an enterprise value of approximately $6.1 billion, including net debt. The transaction is expected to close by the second quarter of 2020.

PHOTO: Pattern Development’s Kanagi Solar project in Japan

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