TPG Inc. (NASDAQ:TPG) shares are trading lower on Tuesday after the company's subsidiary, TPG Rise Climate, teamed up with GIC to acquire Techem Group for around $7.5 billion.
The purchase price will be paid in two installments: one at closing and the remaining balance in July 2027.
TPG Rise Climate — one of the largest private equity funds focused on global climate solutions — invests in companies that facilitate meaningful decarbonization at scale.
The transaction is anticipated to close in the first half of 2025, pending regulatory approvals.
The acquisition of Techem marks the fund's largest transaction to date, with GIC making a significant minority investment.
Ed Beckley, a managing partner of TPG Rise Climate, praised Techem for "improving the environmental impact of real estate assets across Europe."
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"There is a tremendous opportunity to reduce energy consumption in built environments by enhancing efficiency and better-managing overall demand," he added.
Techem CEO Matthias Hartmann said the deal will help the company expand "across Europe and beyond."
On Monday, the company disclosed a deal to acquire the remaining 70% stake in DIRECTV from AT&T Inc. (NYSE:T) for $2.5 billion.
Also, Creative Planning disclosed that TPG made a significant minority investment in the company for an undisclosed amount.
Investors can gain exposure to the BX stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF (BATS:LBO) and Invesco Global Listed Private Equity ETF (NYSE:PSP).
Price Action: TPG shares are up 1.2% at $58.25 at the last check Tuesday.
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