Aypa Power Brookfield deal values battery storage platform at $7bn

Brookfield has agreed to acquire Aypa Power from Blackstone Energy Transition Partners in a $7bn transaction, adding a battery storage developer with projects in operation, construction and under contract. The Aypa Power Brookfield deal brings 35 operating or under-construction projects into Brookfield’s energy portfolio, according to the companies.

Aypa Power is based in Toronto and Austin and develops battery storage projects. Under the agreed transaction, Brookfield will acquire Aypa’s operating, under-construction and contracted project portfolio, as well as its development platform.

The sale marks a transfer of a battery storage business from Blackstone’s energy transition investment arm to Brookfield, one of the largest global alternative asset managers. Financial terms disclosed by the companies put the deal value at $7bn.

What is the Aypa Power Brookfield deal?

The transaction is Brookfield’s agreement to buy Aypa Power, including its existing battery storage assets and development platform, from Blackstone Energy Transition Partners. Battery storage projects typically support power systems by storing electricity for later use, and Brookfield’s Energy group said the technology is becoming more important for reliability and resilience in energy systems.

Jehangir Vevaina, chief investment officer in Brookfield’s Energy group, said in a statement that Brookfield was looking to work with Aypa on the company’s growth pipeline. He said combining Aypa’s platform with Brookfield’s capabilities across technologies and geographies would strengthen Brookfield’s ability to deliver integrated energy solutions to large power buyers.

Aypa is led by founder and chief executive Moe Hajabed. The company launched its first project in 2018, according to the announcement, and now has 35 projects either operating or under construction.

Who advised on the transaction?

Cantor Fitzgerald & Co. served as lead financial adviser to Aypa and Blackstone, with BofA also advising them financially. Kirkland & Ellis acted as legal counsel to Aypa and Blackstone.

Brookfield was advised by White & Case as legal counsel. The companies did not disclose further closing conditions or a timetable in the announcement.

The agreement comes as energy investors continue to allocate capital to infrastructure that can support power supply reliability. In the companies’ statement, Brookfield framed battery storage as part of the broader set of energy technologies needed by large electricity buyers.

This story draws on original reporting from PE Hub.