La Caisse Completes Acquisition of Innergex
Global investment group La Caisse has finalised the acquisition of Innergex Renewable Energy and mobilised a group of investors to support its long-term growth.
La Caisse said the transaction represents a key step in the growth of one of Canada’s leading renewable energy platforms.
As part of the transaction, La Caisse has syndicated approximately 20% of its invested capital to bring in like-minded investors who share its vision for the next chapter of Innergex’s growth.
This approach brought together a group of investors, including several Québec institutions such as Investissement Québec, Desjardins Global Asset Management and Fondaction.
This syndication was also open to international investors, including 14 Swiss institutional investors who will join the syndicate of Québec investors mobilised by La Caisse.
Executive vice president and head of infrastructure at La Caisse Emmanuel Jaclot said: “Innergex is a Canadian renewable energy leader and plays a key role in the energy transition.
“To shift into a higher gear, the company needed shareholders aligned with its long-term potential, protected from stock market cycles. That’s why we brought together a syndicate of Québec and international investors who share this vision.
“This privatisation immediately provides Innergex with increased financial agility to accelerate the development of large-scale projects. It is a reflection of Innergex’s potential and Québec’s leadership in the energy transition.”
Innergex president and chief executive Michel Letellier said: “With the strong commitment of a group of leading investors, Innergex is beginning a new chapter in its history.
“This alliance with partners who believe in our mission and values will enable us to pursue our growth with ambition, agility and vision.
“Together, we will accelerate the development of promising renewable energy projects, here and around the world, and continue building a more sustainable energy future for all.”
As the leading shareholder, La Caisse will continue to support Innergex in its long-term growth strategy, both in Canada and internationally, by leveraging its diversified asset portfolio and its expertise in developing renewable energy projects around the world.
Earlier today La Caisse issued a press release stating it has finalized the acquisition of Innergex and mobilizes a group of investors to support its long-term growth:
La Caisse (formerly CDPQ) announced today that it has finalized the privatization of Innergex Renewable Energy Inc. This transaction represents a key step in the growth of one of Canada’s leading renewable energy platforms.
La Caisse also completed the syndication process that was initiated when the transaction was initially announced, in keeping with its stated intention to syndicate up to 20% of the capital it invested in Innergex with investors who share its vision for the next chapter in the company’s growth. This approach brought together a group of investors, including several Québec institutions such as Investissement Québec, Desjardins Global Asset Management and Fondaction.
This syndication was also open to international investors, including 14 Swiss institutional investors that will join the syndicate of leading Québec investors mobilized by La Caisse.
“Innergex is a Canadian renewable energy leader and plays a key role in the energy transition. To shift into a higher gear, the company needed shareholders aligned with its long-term potential, protected from stock market cycles. That’s why we brought together a syndicate of Québec and international investors who share this vision,” said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at La Caisse. “This privatization immediately provides Innergex with increased financial agility to accelerate the development of large-scale projects. It is a reflection of Innergex’s potential and Québec’s leadership in the energy transition.”
“With the strong commitment of a group of leading investors, Innergex is beginning a new chapter in its history,” added Michel Letellier, President and Chief Executive Officer of Innergex. “This alliance with partners who believe in our mission and values will enable us to pursue our growth with ambition, agility and vision. Together, we will accelerate the development of promising renewable energy projects, here and around the world, and continue building a more sustainable energy future for all.”
As the leading shareholder, La Caisse will continue to support Innergex in its long-term growth strategy, both in Canada and internationally, by leveraging its diversified asset portfolio and its expertise in developing renewable energy projects around the world.
ABOUT DE LA CAISSE
At La Caisse, formerly CDPQ, we have invested for 60 years with a dual mandate: generate optimal long-term returns for our 48 depositors, who represent over 6 million Quebecers, and contribute to Québec’s economic development.
As a global investment group, we are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2024, La Caisse’s net assets totalled CAD 473 billion. For more information, visit lacaisse.com or consult our LinkedIn or Instagram pages.
I already discussed why La Caisse took Innergex private here.
I noted the following:
Why did CDPQ take Innergex private?
For a lot of reasons. First and foremost is that it's an important renewable energy company in Quebec and to ensure its long-term success and growth, CDPQ rightly felt it's better to take it private than leave it as a publicly listed company struggling to convince shareholders it's worth a lot more.
Truth be told, renewable energy companies are out of favour ever since President Trump and his administration came to power but this will not last forever.
Still, no doubt in my mind that Innergex is better suited to be a private company right now where it can focus on its growth strategy knowing it has the resources and capital of CDPQ behind it.
From the first article above:
The big problem for renewable project producers is that they have to spend a lot of money now in order to generate cash flows six or seven years later, said Innergex chief executive officer Michel Letellier.
“The public market doesn’t like that dynamic,” Mr. Letellier said in an interview, adding that the recent wave of privatizations suggests many investors don’t appreciate the long-term value creation the industry is providing.
These are capital intensive companies investing for long-term projects and higher rates also impacted them negatively.
In terms of syndication, all the big institutions from Quebec joined La Caisse on this deal as well as some international investors.
That shows a vote of confidence for what is one the biggest take private deals in Canada this year.
[Note: The largest take-private deal in Canada in 2024 was the $6.3 billion deal where Montreal-based Nuvei Corporation was taken private by a group of investors led by Novacap and La Caisse (CDPQ).]
Below, the Uptime Wind Energy Podcast discusses the acquisition of Innergex by La Caisse (CDPQ) for $3.6 billion, highlighting its implications on the wind industry. We also delve into LM Wind Power producing blades for ENERCON from its factory in Turkey and feature the Buffalo Mountain Wind Farm, a unique project on a reclaimed coal mine in Tennessee.
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