Allete Sold to Partnership in $6.2 Billion Deal; Company Going Private

Announcement says headquarters to remain in Duluth.

The company behind most of the northland’s power and energy has been bought.

Allete announced the purchase Monday morning, and it will now become a private company.

Allete is the parent company of Minnesota Power and Superior Water, Light and Power. It has been bought by a large partnership with hopes that deep pockets will fund future capital investments.

The deal announcement included assurances that offices and headquarters will remain in Duluth.

Allete was purchased by a partnership between Canada Pension Plan Investment Board (CPP Investments), and Global Infrastructure Partners (GIP).

The deal is valued at $6.2 billion, including the debt being assumed by the new owners. Shareholders will be paid $67 a share.

When the deal is completed, Allete will become a private company, and shares will no longer be sold on the New York Stock Exchange.

In a statement, Allete’s Chair, President and Chief Executive Officer, Bethany Owen, said, “Through this transaction with CPP Investments and GIP, we will have access to the capital we need while keeping our customers, communities and co-workers at the forefront of all that we do, with continuity of our day-to-day operations, strategy and shared purpose and values.”

In addition to saying that Allete’s headquarters would stay in Duluth, the announcement said there are “meaningful commitments to retain Allete’s workforce and maintain compensation levels and benefits programs.”

The managing director of CPP Investments, James Bryce, said, “ALLETE’s management team has done an excellent job leading the company toward a truly sustainable clean-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,” Bryce said.

The acquisition was approved unanimously by Allete’s board of directors. A number of regulatory approvals are also needed. The deal is expected to be final by the middle of next year.