Canada Pension Plan Investment Board (CPPIB) has agreed to acquire US-based renewable energy company Pattern Energy Group in a deal valued at $6.1bn, including its net debt.
Under the deal, CPPIB will pay $26.75 per share to Pattern Energy shareholders.
Pattern Energy’s portfolio consists of 28 renewable energy projects with an operating capacity of 4.4GW in the US, Canada and Japan.
CPPIB Power and Renewables head Bruce Hogg said: “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.
“The Pattern Energy management team has a proven track record of identifying and executing development strategies with differentiated competitive advantages. We look forward to working with Pattern Energy and Riverstone to grow the company.”
Furthermore, CPPIB has reached a deal with long-time Pattern-investor Riverstone to merge Pattern Energy and its privately owned affiliate Pattern Development after the acquisition of Pattern Energy by CPPIB.
Pattern Energy CEO Mike Garland said “This agreement with CPPIB and Riverstone provides certain and significant value for Pattern Energy shareholders with an all-cash transaction at a very attractive stock price.
“Over the years, Pattern Energy has been able to provide shareholders with a consistent dividend and now our shareholders can realise the value embedded in the company. We believe the proposed transaction reflects the strength of the platform we have built.”
Subject to Pattern Energy shareholder and regulatory approvals and other customary closing conditions, the deal is expected to close by the second quarter of 2020.
Upon completion of the deal, Pattern Energy’s management team and the combined business will be led by Garland.
For this deal, Evercore and Goldman, Sachs acted as independent financial advisers to Pattern Energy’s special committee while Paul, Weiss, Rifkind, Wharton & Garrison served as independent legal counsel to the special committee.