M&A  December 9, 2024

Gravity Renewables acquired by New York firm

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BOULDER — Gravity Renewables Inc., a Boulder-based company which owns, operates and develops hydroelectric plants, has been acquired by New York-based Relevate Power, which specializes in redevelopment of hydropower assets.

Financial details of the acquisition were unavailable, but financing was provided by investment funds managed by Apollo Global Management (NYSE: APO).

The acquisition adds 40 megawatts of high-quality assets to Relevate’s portfolio, more than doubling the company’s power generation capacity and bringing on board an experienced operating team. It also strengthens Relevate Power’s footprint in the northeastern United States, where it plans to locate its new remote operations center. Along with Gravity’s 15 hydroelectric plants and one solar project, the acquired assets have been awarded more than $20 million in grants from the U.S. Department of Energy.

Gravity’s portfolio includes five hydro plants in New York, three each in Connecticut and Vermont, two in Massachusetts and one each in Rhode Island and North Carolina.

“We are excited to welcome Gravity’s people and assets into the Relevate Power family,” Matthew Wenger, CEO of Relevate Power, said in a prepared statement. “We look forward to working together with our new colleagues and investing to enhance, preserve and protect these essential and historic assets for the benefit of the communities we serve.”

Goksenin Ozturkeri, chief investment officer at Relevate Power, highlighted the strategic importance of the deal. “This acquisition is a game-changer for Relevate,” he said. “This is the first of many acquisitions in our pipeline as we focus on consolidating a fragmented market and seek to capitalize on further growth opportunities with Apollo.”

As part of the transaction, an Apollo representative will join Relevate Power’s board of directors. “We are excited to enter the distributed hydro space and mark the beginning of a broader relationship with Relevate,” Brad Fierstein, partner at Apollo, said in a prepared statement. “We believe hydropower is an attractive sector that offers significant growth potential and strong alignment with the energy transition.”

King and Spalding and The West Firm served as legal advisers to Relevate Power, while Vinson & Elkins served as legal adviser to Apollo Funds.

Relevate was founded in 2022 from the merger of Independent Power Producers Dichotomy Power and Clear Energy, along with the power marketing firm Standard Power. The company is backed by Greenbacker Development Opportunities Fund I LP. and Aegon Asset Management Real Assets.

Gravity Renewables has been acquired by Relevate Power, which specializes in redevelopment of hydropower assets.

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