Altus Power Expands Solar Reach with Key Acquisition

• Altus Power expands to 26 states with a 48-MW solar acquisition, boosting New York capacity and enhancing sustainable energy for public-sector clients.

Altus Power has acquired a 48-MW solar portfolio from Tortoise Capital Advisors, consisting of 15 ground-mounted installations in Kansas and New York. This purchase expands Altus Power's operations to 26 states and increases its solar capacity in New York to over 250 MW, making it the company's largest market. The solar plants supply power to municipal agencies, universities, and public-sector customers, offering long-term price stability and reduced carbon footprints. The acquisition aligns with Altus's strategy to cluster assets for cost efficiency and reliability.

This transaction marks Altus Power's first major move since TPG's $2.2 billion acquisition of the company, indicating a continued focus on M&A-driven growth. Marathon Capital advised Tortoise on the deal, highlighting the active U.S. solar M&A market fueled by tax incentives from the Inflation Reduction Act. Altus executives expect the assets to be immediately accretive to cash flow due to existing power-purchase agreements and suggest more acquisitions are likely before year-end. For Tortoise, the sale frees up capital for new projects while ensuring long-term stewardship of the solar assets.

How does Altus Power's acquisition impact its market presence and future growth strategy?

• Strengthens Altus Power's market presence by expanding its operations to 26 states, enhancing its geographical footprint and market reach.
• Increases Altus Power's solar capacity in New York to over 250 MW, solidifying its position as a leading solar provider in the state.
• Enhances Altus Power's ability to serve municipal agencies, universities, and public-sector customers, reinforcing its reputation for providing long-term price stability and reduced carbon footprints.
• Aligns with Altus Power's strategy to cluster assets, improving cost efficiency and reliability, which can lead to better operational performance and customer satisfaction.
• Demonstrates Altus Power's commitment to M&A-driven growth, particularly following TPG's $2.2 billion acquisition, indicating a strategic focus on expanding through acquisitions.
• Positions Altus Power to benefit from the active U.S. solar M&A market, which is supported by tax incentives from the Inflation Reduction Act, potentially leading to more growth opportunities.
• Provides immediate accretive cash flow due to existing power-purchase agreements, enhancing financial stability and supporting further investment in growth initiatives.
• Suggests potential for additional acquisitions before year-end, indicating a proactive approach to scaling operations and increasing market share.
• Reinforces Altus Power's long-term growth strategy by ensuring a steady pipeline of projects and opportunities for expansion in the renewable energy sector.