BY Fraser Tennant
In the latest in a series of power deals in the US, investment firm Blackstone Infrastructure is to acquire energy holding company TXNM Energy in a transaction valued at $11.5bn.
Under the terms of the agreement, Blackstone Infrastructure will acquire TXNM Energy for $61.25 per share in cash upon closing, including net debt and preferred stock, and will fund the purchase price entirely with equity.
Based in Albuquerque, New Mexico, TXNM Energy delivers energy to more than 800,000 homes and businesses across Texas and New Mexico through its regulated utilities, TNMP and PNM.
“Our successes at TXNM Energy have stemmed from a deliberate approach to investing in PNM and TNMP in a manner aligned with the priorities of our customers and communities,” said Pat Collawn, chair and chief executive of TXNM Energy. “We have integrated new resources to supply over two-thirds of PNM electricity needs with carbon-free energy and supported double-digit demand growth at TNMP.”
Blackstone Infrastructure is also investing $400m through the purchase of 8 million newly issued shares of TXNM Energy common stock at $50 per share, by way of a private placement agreement, to support TXNM Energy’s industry-leading growth plans. This issuance is expected to be completed in June 2025.
“We back industry-leading companies using our perpetual capital to support economic development,” said Sean Klimczak, global head of Blackstone Infrastructure. “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 Texas and New Mexico.”
The transaction has been unanimously approved by TXNM Energy’s board of directors and is estimated to close in the second half of 2026, subject to TXNM Energy shareholder approval, regulatory approvals and other customary closing conditions.
“We are excited to form this long-term partnership with Blackstone Infrastructure to build upon these successes,” concluded Ms Collawn. “We will continue to collaborate with customers, communities, legislators and regulators to achieve our shared goals for a reliable, resilient grid to support economic prosperity and clean energy.”
News: Blackstone bets on soaring power demand with $11.5 billion TXNM Energy deal