Quebec-based pension fund doubles stake in renewable energy leader as part of private equity deal
In a significant strategic move that underscores pension funds' growing appetite for long-term renewable energy infrastructure, Brookfield and La Caisse de dépôt et placement du Québec (formerly CDPQ) announced earlier today that they will acquire Quebec-based renewable energy producer Boralex Inc.
According to the press release, the deal is an all-cash transaction, valuing the company at approximately $9.0 billion on an enterprise basis.
Under the terms of the agreement, Boralex shareholders will receive $37.25 in cash per common share, representing a 31.8 per cent premium over the March 20 closing price on the TSX and a 36.4 per cent premium over the 30-day volume-weighted average price for the period ending that same day.
La Caisse, which has supported Boralex as both shareholder and lender since 2017, currently holds approximately 15 per cent of outstanding common shares. Following the close of the transaction, the pension fund manager will double its stake to 30 per cent.
The deal implies a total equity value of approximately $3.8 billion, both companies noted in the release.
"This transaction reflects our strong confidence in this renewable energy leader that is deeply rooted in Québec and well positioned to pursue growth across North America and internationally," said Kim Thomassin, executive vice-president and head of Québec at La Caisse, adding that the partnership aligns with the pension fund's commitment to the energy transition and its mandate to build Quebec-based champions that create lasting value.
Meanwhile, Brookfield, participating through its flagship infrastructure strategy alongside institutional partners including Brookfield Renewable Partners, will hold the remaining 70 per cent.
“We are excited to partner with La Caisse to accelerate the delivery of Boralex’s development pipeline in its next phase of growth,” said Jehangir Vevaina, Brookfield’s global chief investment officer, energy in a statement. “Combining Brookfield’s customer and supply chain partnerships, long-term capital, and deep operational know-how in renewables, with the strong foundation built by Boralex will help grow our presence in Canada and other attractive energy markets.”
For Boralex, the move to private ownership is designed to fuel the next phase of its 2030 Strategic Plan. The company operates roughly 3,800 megawatts of wind, solar, hydro, and battery storage assets, with over 90 per cent contracted for an average term of 10 years across Canada, France, the United States, and the United Kingdom.
Beyond its operating portfolio, Boralex is advancing approximately 300 MW of projects under construction or ready to build, 750 MW of secured projects, and a deeper pipeline of more than 7,200 MW at various stages of development.
Boralex president and CEO Patrick Decostre said the partnership provides the financial flexibility and complementary expertise needed to respond to accelerating demand.
“On top of its financial capacity, Brookfield alongside La Caisse, brings complementary expertise to Boralex's skill set and will enable us to benefit from significant economies of scale and opportunities, particularly in procurement, energy commercialization to large corporations and sharing of best practices within their different platforms,” he said in a statement.
Boralex will maintain its headquarters in Quebec and continue to operate independently after closing.
The deal is expected to close by the fourth quarter of 2026, subject to shareholder approval, regulatory clearances, and other customary closing conditions.
