Pattern Energy and Pattern Development—companies known for developing renewable-energy projects in the western U.S.—will be acquired by the Canada Pension Plan Investment Board in a transaction valued at $6.1 billion.
When the all-cash transaction at $26.75 per share is finalized, Pattern Energy will become a privately held company and shares of its common stock will no longer be listed. Pattern Energy is currently listed on the NASDAQ Global Select Market and Toronto Stock Exchange.
San Francisco-based Pattern Development develops wind, solar, transmission and energy storage projects which are "typically, although not always, bought, owned and operated by our affiliate Pattern Energy," the company said on its website. Pattern Energy and Pattern Development are structurally separate, but share the same executive leadership, it said.
CPPIB, with Riverstone Holdings, a private investment firm that has invested in Pattern Energy since its founding, will combine the two companies into a single renewable-energy company. Mike Garland, the current CEO of both Pattern Energy and Pattern Development, will lead the new company.
The transaction does not change the status of any operational projects or those in development. "This is really business as usual for Pattern Energy," Matt Dallas, company spokesperson, said. "We will still own, operate and construct solar, wind, and transmission assets. The business is not changing, just the ownership structure."
"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," Bruce Hogg, managing director and head of power and renewables for CPPIB, said.
Pattern Energy's portfolio includes 28 renewable-energy projects with an operating capacity of 4.4 GW in the United States, Canada and Japan. This includes the 79.75-MW Stillwater Wind project in Montana as well as the three-phase, 544-MW Grady Wind project and the 200-MW Duran Mesa Wind project, both of which are in New Mexico. The company has power-purchase agreements with Silicon Valley Clean Energy and Monterey Bay Community Power.
Pattern Development develops, finances and places wind and solar projects into operation. It claims to have 10,000 MW of projects in the pipeline worldwide.
The deal should close by the second quarter of 2020, once Pattern Energy shareholder and regulatory approvals are obtained and other closing conditions are met.