M&A · Energy · Electric & Other Services Combined
Canada Pension Plan Investment Board to acquire Allete Inc
Announced May 6, 2024 · Closed Dec 15, 2025
Deal value$3.90BEV $5.62B
Premium19.0%To unaffected price
EV / Adj. EBITDA12.8x3.0x EV / Revenue
ConsiderationAll cash$67.00 per share
Transaction
- Acquirer
- Canada Pension Plan Investment Board
- Target
- Allete Inc (ALE)
- Buyer type
- Strategic
- Offer price per share
- $67.00
- Enterprise value
- $5.62B
- Status
- Closed Dec 15, 2025
Deal protections
- Break fee (target pays)
- $116M · 3.0%
- Reverse fee (buyer pays)
- $212M · 5.4%
- Go-shop
- No-shop
- Financing
- Committed · MUFG, SMBC Nikko
Advisors
- To the acquirer
- Not disclosed
- To the target
- Houlihan Lokey, JPMorgan
- JPMorgan fee
- $41.0M
Sector context · Energy
- Comparable deals
- 39 in the prior 24 months
- Premium
- 19.0% vs. 18.7% sector median
- EV / Adj. EBITDA
- 12.8x vs. 7.9x sector median
- Break fee
- 3.0% vs. 2.9% sector median
Timeline
- AnnouncedMay 6, 2024
- Proxy filedJun 20, 2024
- Definitive proxyJul 10, 2024
- Shareholder voteAug 21, 2024
- ClosedDec 15, 2025
Valuation · fairness opinions
Discounted cash flowJPMorgan$53.75$84.50
Trading comparablesHoulihan Lokey$49.98$57.99
Trading comparablesHoulihan Lokey$52.20$61.71
Trading comparablesHoulihan Lokey$50.12$61.26
Trading comparablesHoulihan Lokey$52.06$65.64
Precedent transactionsHoulihan Lokey$59.29$67.40
Offer $67.00
Implied value per Allete Inc share by analysis, from JPMorgan and Houlihan Lokey · DCF discount rate 6%–6.5%.