Clean Energy Provider To Merge With Vehicle Sponsored By Real Estate Services Group CBRE, Go Public In $1.58 Billion Deal

Will Allow Clean Energy Company To Supply CBRE's Vast Network Of Managed Properties, Tenants

July 13, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Altus Power, Inc. ("Altus Power" or "the Company"), which describes itself as a clean electrification company and which provides renewable energy solutions to customers, and CBRE Acquisition Holdings, Inc. ("CBAH") today announced a definitive agreement for a business combination that would result in Altus Power becoming a public company listed on the New York Stock Exchange under the new ticker symbol "AMPS".

CBAH is a special-purpose acquisition company sponsored by CBRE Group, Inc. ("CBRE"), which is described as the world’s largest commercial real estate services firm.

Altus Power is currently wholly-owned by its management team and Blackstone Credit, and serves commercial, public sector, and community solar customers by offering locally-sited solar generation, energy storage, and EV-charging stations across the U.S.

Since its founding in 2009, Altus Power has constructed or acquired more than 200 distributed generation solar facilities totaling more than 265 megawatts from Vermont to Hawaii. The Company expects to end 2021 with a solar asset portfolio of more than 400 megawatts.

"Altus Power uses a data-driven approach to build onsite solar, combining building energy consumption data, the design and sizing of battery storage, and clean electric vehicle charging infrastructure, all of which can be integrated with other buildings to create a networked clean energy grid," Altus says

CBRE Group, Inc. has more than 7 billion square feet of commercial real estate under management and serves more than 90 Fortune 100 corporations

The transaction is anticipated to generate gross proceeds of up to approximately $678 million of cash, assuming no redemptions by CBAH’s public stockholders, which will be used to fund the Company’s growth initiatives and strengthen the combined company’s balance sheet. Proceeds include a $275 million fully-committed common stock PIPE (the "PIPE"), anchored by CBRE Group, Inc. and existing investors, including Altus Power management and Blackstone Credit, as well as new investors, including ValueAct Capital, Liberty Mutual Investments and other institutional investors. The pro forma implied equity value of the combined company is $1.58 billion at the $10 per share price in the transaction, and assuming no redemptions by CBAH’s public stockholders.

"Demonstrating the deep alignment of CBRE with Altus Power’s business success, CBRE’s sponsor economics are deliberately designed to be tied to the long-term performance of Altus Power. Unlike traditional SPAC incentive structures, CBRE receives no upfront sponsor shares but instead earns its incentive as Altus Power shares appreciate in value over time," the companies said

Altus Power’s leadership will remain intact, with Lars Norell and Gregg Felton continuing as Co-Chief Executive Officers of the combined company. Messrs. Norell and Felton will work alongside the Company’s current executive team. The Board of Directors of the combined company will include representation from Altus Power, CBRE, Blackstone Credit and ValueAct Capital, and have a majority of independent directors.

The transaction has been unanimously approved by the board of Altus Power and unanimously approved by the board of CBAH after receiving the unanimous recommendation of its special committee. Completion of the proposed transaction is subject to customary closing conditions, including the approval of CBAH’s stockholders (including approval by CBAH’s stockholders holding a majority of the voting power of the stockholders who are not affiliated with CBRE Group, Inc. or executive officers of CBAH), and is expected to occur in the fourth calendar quarter of 2021.

"The CBRE partnership we are announcing today, through the proposed combination with CBAH, will allow Altus Power to leverage the strength and reach of the world’s largest real estate services company, along with Blackstone’s exceptional, long-standing sponsorship, further enhancing our ability to serve corporate and public clients with onsite clean energy generation and storage," said Lars Norell, Co-Chief Executive Officer and Director of Altus Power. "We are very excited about the opportunity to supply real estate investors and occupiers -- many of whom will come to us through our relationship with CBRE -- with clean energy savings and sustainability benefits using a data-driven approach to design and build onsite solar generation facilities, energy storage, and EV-charging for vehicles and fleets -- while preparing for a networked future that will have these systems work in tandem and across multiple buildings to produce value for commercial, industrial, municipal and community solar customers."

"This transaction will deliver the financial and strategic resources to accelerate Altus Power’s growth plan and drive long-term shareholder value creation," Bill Concannon, Chief Executive Officer of CBAH said. "CBRE is excited to help Altus Power bring its clean energy solutions and expertise to support our clients in reducing their carbon footprint and meeting their other sustainability goals. This is an increasingly urgent imperative for real estate occupiers and investors alike."

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