Renewable energy firm Pattern Energy goes private in $2.6 billion deal

Renewable energy producer Pattern Energy Group has agreed a deal to be taken private by the Canada Pension Plan Investment Board (CPPIB) for US$2.63 billion.

Shareholders of Pattern Energy, which owns 28 wind and solar projects in the US, Canada and Japan, will receive $26.75 per share, a discount of around 4% to the stock’s close on Friday.

While the deal is subject to a 35-day go-shop process, which would allow another suitor to outbid CPPIB, Pattern Energy’s chairman Alan Batkin said there had been a robust sale process ahead of the announcement.

Once the transaction closes in the second quarter of 2020, Pattern Energy and Pattern Energy Group Holdings – a development company – will be combined to create an integrated renewable energy company that both builds and operates power assets. Pattern Energy’s CEO Mike Garland will lead the combined entity.

In a separate statement, the San Francisco-based company reported $119 million in revenue in the third quarter of 2019. For CPPIB, the deal follows previous acquisitions in the renewable power space, including deals with NextEra Energy Partners and Enbridge.