Apollo Funds (APO) Acquire Freedom CNG

Apollo (NYSE: APO) today announced that Apollo-managed funds (the “Apollo Funds”) have acquired a majority interest in Freedom CNG (“Freedom”), an owner and operator of compressed natural gas (CNG) and renewable natural gas (RNG) fueling infrastructure in Texas.

Founded in 2012, Freedom operates a fast-growing network of high capacity fueling stations in strategic, highly trafficked locations in the Houston Metro area, providing RNG to customers including leading logistics and transportation companies, refuse companies, municipalities, school districts and other high-volume fuel users in support of their decarbonization objectives.

Apollo Partner Scott Browning said, “Freedom has developed a strong portfolio of RNG fueling stations with meaningful growth potential driven by established relationships with blue-chip customers and attractive new development opportunities. We look forward to working with Bill, Ronny and the rest of the Freedom team to continue expanding Freedom’s platform through organic and inorganic growth initiatives in a market where we see the need for significant investment given the tailwinds that exist. Apollo has deep expertise investing in the natural gas value chain as part of our broader strategy to serve as a key capital provider supporting the energy transition.”

Freedom Managing Partners Bill Winters and Ronny Cuenod said, “We are pleased to partner with the Apollo Funds, who bring the resources and experience necessary to help us multiply our efforts to meet the growing demand for economically attractive and environmentally sensitive low carbon alternative fuels. We are proud of the growth we have achieved in the last 12 years and now look forward to working alongside Apollo Funds to expand the business while promoting broader adoption of RNG.”

Transportation accounts for over 25% of U.S. energy consumption, and practical solutions are needed to migrate the sector towards sustainable energy. CNG, especially when supplied as RNG sourced from landfills and other sources, is an economic alternative available today that brings significant emissions reductions without compromising operational efficiency. With growing adoption in transportation markets and strong bipartisan regulatory support, RNG demand is poised to accelerate, and we believe Freedom is well-positioned to capitalize on the need for more robust downstream fueling infrastructure across the U.S. as CNG/RNG is understood and appreciated as commercially rational and currently deployable.

Over the past five years, Apollo-managed funds have deployed approximately $40 billionⁱ into energy transition and sustainability-related investments, supporting companies and projects across clean energy and infrastructure, including offshore and onshore wind, solar, storage, renewable fuels, electric vehicles as well as a wide range of technologies to facilitate decarbonization.

Raymond James & Associates, Inc. served as financial advisor and Crady Jewett McCulley & Houren L.L.P. and Baker Botts L.L.P. acted as legal counsel to Freedom. Vinson & Elkins LLP acted as legal counsel to the Apollo Funds.

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