Innergex shareholders and top brass in negotiations surrounding the potential $10 billion buyout by CDPQ
In a significant move for the renewable energy sector, La Caisse (CDPQ) has agreed to acquire Innergex Renewable Energy in a transaction valued at $10 billion. The deal, announced on February 25, 2025, will see CDPQ taking over the company that develops, owns, and operates solar parks, hydroelectric plants, wind farms, and energy storage facilities.
The transaction was facilitated by a team of key advisors. BMO Capital Markets and CIBC Capital Markets served as financial advisors to Innergex, while McCarthy Tétrault LLP provided legal counsel, led by Patrick Boucher and Philippe Leclerc. The McCarthy Tétrault team included specialists in various areas of law, such as Laurence Cromp-Lapierre, Mireille Trottier, Richard O'Doherty, François Dupuis, Philippe April, Sam Stoychev, Joseph Gagnon, Yassine Khadir, Jerry Lan, François Langlois (business), Dominic Thérien, Michael Caldecott (competition/antitrust), Christian Meighen, Geneviève Favreau (tax), Morgan Troke (financial services), Annie-Poirier Simard, François Giroux, Nicolas Deslandres (litigation), and Jonathan Adessky (technology).
Greenhill & Co. Canada Ltd. acted as the independent financial advisor, and Norton Rose Fulbright Canada LLP provided legal counsel to the Special Committee of Innergex. Hoskin & Harcourt S.E.N.C.R.L./s.r.l. was the legal team that advised the shareholders proceeding with the rollover, as well as the legal team that advised Innergex's management on various aspects of the transaction, including corporate law, tax, and executive compensation. Niko Veilleux and Jean-Philippe Bertrand advised on corporate law for Innergex's management, while Manon Thivierge and Jean-Philippe Dionne advised on tax matters. Julien Ranger-Musiol advised on executive compensation.
CDPQ funded the acquisition and related debt with cash on hand and a new $1.2 billion senior financing led by TD Securities. This marks a significant step forward in CDPQ's commitment to investing in renewable energy and supporting the transition to a low-carbon economy.
Innergex, with its diverse portfolio of renewable energy assets, will undoubtedly contribute to CDPQ's efforts in this regard. The company's focus on sustainability and innovation aligns well with CDPQ's investment strategy, making this acquisition a strategic move for both parties.
[1] Innergex Press Release
[2] CDPQ Press Release
[3] Financial Post Article
The acquisition of Innergex Renewable Energy was a strategic move for CDPQ, as it reinforces their investment in the renewable energy industry. The funding for the transaction was facilitated through CDPQ's cash on hand and a new $1.2 billion senior financing led by TD Securities, indicating a significant commitment to financial resources in this sector.
The energy sector stands to benefit from this transaction, as Innergex's focus on sustainability and innovation aligns with CDPQ's investment strategy, promising advancement in energy finance and low-carbon economy efforts.
