ALLETE announces plans to be acquired by partnership for $6.2 billion

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ALLETE announced it has entered into a definitive agreement with Canada Pension Plan Investment Board and Global Infrastructure Partners.

In major energy news Monday morning, ALLETE announced it has entered into a definitive agreement with Canada Pension Plan Investment Board and Global Infrastructure Partners, to be acquired for $6.2 billion dollars, or $67 per share.

ALLETE said it will be locally managed and operated with headquarters in Duluth. The statement also said union agreements will be honored, and the workforce will be retained.

Day to day operations will remain the same. As for rates that customers pay for power, those are set by the Minnesota Public Utilities Commission and other regulators like the Public Service Commission of Wisconsin.

The company owns Minnesota Power, which serves 150,000 residents, 14 municipalities, and some of the nation's largest industrial customers, like the mines. They employ about 1500 people nationwide, with most of them in Minnesota.

ALLETE also owns Superior Water, Light and Power, ALLETE Clean Energy, BNI energy in Bismark, and New Energy Equity, headquartered in Annapolis.

The statement said this acquisition is expected to close in mid-2025, subject to the approval of shareholders and getting regulatory approvals. ALLETE's Board of Directors approved it unanimously.

And once it's complete, ALLETE shares will no longer trade on the NYSE, and ALLETE will become a private company.

Leaders said this allows ALLETE to have access to the capital they need, and together they will invest in the clean-energy transition.

Bethany Owen, ALLETE Chair, President, and CEO, said, "CPP Investments and GIP are aligned with ALLETE's values of safety, integrity, planet and people. They also recognize the importance of our employees and our ties to the communities we serve and in which we operate. To that end, we are proud to remain locally managed as we enter this next chapter as committed as ever to our customers, our communities and our employees. I look forward to all we will achieve together."

Owen will continue to be the CEO, and the current management team will continue to lead ALLETE and remain as primary points of contact for customers, regulators, and other stakeholders.

Tony Barrett, a retired economics professor, said he doesn't see any downsides. When he heard the news, this was his thought. "It was not something I had thought about. But you look at the Canadian pension company, and what they're saying is that this is a good company that's generating cash flow for our pensioners, and the infrastructure company is thinking the same thing. "

He went on to say, "It's a testament to the quality of ALLETE and ALLETE management over the last 20 years."

A statement from James Bryce, Managing Director and Global Head of Infrastructure of CPP Investments, said, "ALLETE's management team has done an excellent job leading the company toward a truly sustainable cleane energy future. Together with GIP, we look forward to bringing our sector expertise and long-term capital to support ALLETE's strong management team as they continue to deliver safe, reliable, affordable energy services to their customers."

And Bayo Ogunlesi, GIP's Chairman and CEO, said, "ALLETE is at the forefront of the clean energy transition and we are thrilled to support the delivery of the company's 'Sustainability-in-Action' strategy, which we believe will generate substantial value both for ALLETE's customers and CPP contributors and beneficiaries. We are excited to work with Bethany Owen and the full ALLETE team as they continue to supply affordable and reliable energy services. GIP, alongside CPP Investments, look forward to partnering to provide ALLETE with additional capital so they can continue to decarbonize their business to benefit the customers and communities they serve. Bringing together ALLETE, with its demonstrated commitment to clean energy, with GIP, one of the world's premier developers of renewable power, furthers our commitment to serve growing market needs for affordable, carbon-free and more secure sources of energy."