Blackstone to acquire TXNM Energy for $11.5bn
Blackstone Infrastructure has agreed to acquire TXNM Energy for $61.25 per share in cash, reflecting a total enterprise value of $11.5bn including net debt and preferred stock.
The acquisition provides significant capital to support TXNM Energy’s subsidiaries, PNM and TNMP, in their efforts to meet the growing electricity infrastructure demands and clean energy goals.
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PNM, a subsidiary of TXNM Energy, is working towards transforming its generation portfolio to align with the US state of New Mexico’s clean energy objectives.
Meanwhile, TNMP is increasing its capital investments to cater to the high growth rates in its Texas service territory.
This transaction is expected to bolster the long-term capital required to achieve these initiatives.
Blackstone Infrastructure global head Sean Klimczak stated: “We are excited to partner with Pat, Don and their fantastic team to accelerate growth at TXNM, and across New Mexico and Texas.
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By GlobalData“We are long-term investors who back industry-leading companies using our perpetual capital to support economic development. We are focused on being great long-term partners to the communities in which we invest, and we look forward to having the opportunity to engage in meaningful dialogue about how we can create win-win, growth-oriented investments across both states.”
With $60bn of assets under management, Blackstone Infrastructure is dedicated to investing in North American infrastructure and enhancing the performance of its portfolio companies.
The company plans to fund the acquisition entirely with equity and does not intend to increase TXNM Energy’s leverage levels for the purchase.
Blackstone Infrastructure will also invest $400m in TXNM Energy by purchasing 8 million newly issued shares at $50 each through a private placement agreement.
This investment, set for completion in June 2025, aims to support TXNM Energy’s growth plans.
TXNM Energy anticipates issuing an additional $400m of equity before the transaction closes to fund its growth rates.
The funding for the transaction will come from equity and the assumption of existing debt, with no new debt being issued as part of the deal. Wells Fargo and Citi are acting as financial advisors, while Troutman Pepper is the legal advisor for TXNM Energy.
RBC Capital Markets and J.P. Morgan are advising Blackstone Infrastructure, with Kirkland & Ellis providing legal counsel.
In a related development in January 2025, Blackstone’s private equity fund, Blackstone Energy Transition Partners, agreed to acquire the 774MW Potomac Energy Center in Virginia.
This natural gas-fired power plant, built in 2017, is strategically located near Washington DC, in an area that hosts a significant portion of the US’s data centre capacity.
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