DTE Energy Co. agreed to sell DTE Vantage, its non-utility energy-projects business, to investors advised by J.P. Morgan Asset Management for about $2.97 billion in cash, as the Detroit company narrows its focus to regulated electric and gas utilities that are spending heavily to serve data centers.
The buyer is Velocity BidCo LLC, a vehicle owned by institutional funds advised by J.P. Morgan Asset Management’s Global Infrastructure group. A regulatory filing set the purchase price at $2,970,672,573 for all equity in DTE Energy Resources LLC, subject to adjustments for cash, debt, working capital, capital spending and transaction expenses. DTE’s board approved the deal on Oct. 30, the parties signed on Nov. 1, and the company disclosed it on Nov. 5 alongside third-quarter results.
What goes, what stays
DTE Vantage develops and operates renewable natural gas plants, power projects and custom energy systems for industrial, commercial and institutional customers. It manages 59 projects in 14 U.S. states and one Canadian province and employs about 600 people. DTE will keep certain assets, mainly coke operations including EES Coke in Calvert City, Ky.
The utility said proceeds will support a capital plan of about $44 billion over five years at its regulated businesses, including investment to connect large data-center loads that DTE says will help hold down customer bills. Kirkland & Ellis advised DTE. The sale is expected to close in the first half of 2027, subject to regulatory approvals and customary conditions.
A Michigan deal with national reach
The sale is among the largest utility carve-outs of the year and gives an infrastructure investor a portfolio of contracted energy projects at a time when such assets are drawing steady demand from long-term funds. HERE Detroit reported the sale for readers in DTE’s home market, where the company’s headquarters remain at One Energy Plaza.
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