Allete enters deal to acquire DG solar developer New Energy Equity

US energy company Allete Inc. has signed a definitive agreement to acquire 100 percent of the membership interests of New Energy Equity LLC for approximately US$165.5 million, subject to a working capital adjustment.

New Energy Equity, with headquarters in Annapolis, Maryland, is one of the leading distributed solar development companies in the US, having successfully completed more than 250 projects across the country totaling more than 310 megawatts. New Energy Equity also offers comprehensive solar operations, maintenance, and asset management services to its customers through its wholly-owned subsidiary, Energy Support Services.

Allete expects the purchase to close in mid-April upon satisfaction of customary closing conditions, including compliance with Hart-Scott-Rodino antitrust clearing requirements. New Energy Equity’s entire team, including management, will remain in place, as will its Maryland headquarters.

J.P. Morgan acted as an exclusive financial advisor to Allete on this transaction.