Brookfield Asset Management is to acquire US battery storage developer Aypa Power in a $7 billion enterprise value deal.

Brookfield confirmed on July 22 that it had entered into an agreement to acquire Aypa from funds managed by Blackstone Energy Transition Partners for around $7 billion enterprise value at closing, or an equity value of $3 billion.

Aypa has about 6.5GW of operating and contracted capacity and a >20GW development pipeline across the US and Canada.

Under the terms of the deal, Brookfield will acquire Aypa’s operating, under-construction and contracted project portfolio, together with its development platform.

Brookfield said the transaction, which is subject to various regulatory approvals, will give it a leading presence in the North American BESS market and help Aypa deliver on its next phase of growth.

Bilal Khan, senior MD, and Mark Zhu, MD from Blackstone said: “We invested in Aypa based on our conviction that battery storage would become increasingly critical to supporting grid reliability and meeting growing electricity demand from AI and other use cases.

“Since then, the company has established itself as the leading battery storage platform in North America, supported by a premier development pipeline and strong customer relationships.”

Clarios, the world’s largest manufacturer of automotive batteries, is owned by Brookfield Business Partners together with institutional partners of Brookfield Asset Management.