New York and Toronto, 07 July 2021
Macquarie Asset Management (“MAM”) and Ontario Teachers’ Pension Plan Board (“Ontario Teachers'”) today announced the signing of an agreement to jointly acquire a 31.6 per cent stake in Puget Holdings (“Puget”) from Canada Pension Plan Investment Board (“CPP Investments”). Puget’s primary operating subsidiary, Puget Sound Energy (PSE), is the oldest and largest electric and natural gas utility in the State of Washington, serving approximately 1.2 million electric customers and 900,000 natural gas customers in the Puget Sound region. MAM and Ontario Teachers' will each hold a 15.8 per cent stake in Puget after the close of the acquisition.
The investment in Puget comes amid a requirement for electric utilities in Washington to eliminate coal-fired power by 2025 and supply 100% carbon free electricity by 2045. The state’s decarbonization policies align with commitments made by MAM and Ontario Teachers' to achieve net zero greenhouse gas emissions by portfolio companies.
“We are very excited to once again partner with Puget and its strong management team,” said David Fass, Head of Macquarie Infrastructure and Real Assets, Americas. “We have always believed Puget to be an outstanding company with an industry-leading commitment to safety, reliability and sustainability. Particularly after the passage of landmark environmental legislation like the Clean Energy Transformation Act, we are thrilled to be reinvesting in the company at this critical time.”
“We are pleased to become shareholders in Puget and expand our portfolio of core infrastructure assets in the United States,” said Dale Burgess, Senior Managing Director of Infrastructure & Natural Resources at Ontario Teachers’. “Puget will play a key role in decarbonizing Washington State’s power generation and assisting local industries and consumers to lower their carbon footprints, which is aligned with our own net zero ambition and focus on helping our portfolio companies transition to and thrive in a low-carbon economy.”
Completion of the transaction is subject to customary closing conditions and regulatory approvals.
The Ontario Teachers' Pension Plan Board (Ontario Teachers’) is the administrator of Canada's largest single-profession pension plan, with C$221.2 billion in net assets (all figures at December 31, 2020). It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annual total-fund net return of 9.6% since the plan's founding in 1990. Ontario Teachers' is an independent organization headquartered in Toronto. Its Asia-Pacific regional offices are in Hong Kong and Singapore, and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario's 331,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
None of the entities referred to in this press release is an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity.