Blackstone to Acquire TXNM Energy in $11.5 Billion Infrastructure Deal - InforCapital

Blackstone Infrastructure Partners, the infrastructure arm of Blackstone Inc., has announced its agreement to acquire TXNM Energy for $5.7 billion in cash. The transaction, including the assumption of debt and preferred stock, values the deal at approximately $11.5 billion.

This acquisition marks a significant step in Blackstone's strategy to expand within the U.S. utility sector, particularly in areas experiencing rapid energy demand growth.

Under the terms of the deal, Blackstone will pay $61.25 per share, a 16% premium over TXNM Energy’s most recent closing price. Ahead of finalization, which is expected in the second half of 2026, Blackstone plans to invest $400 million through the purchase of 8 million new shares at $50 each. TXNM Energy also aims to raise an additional $400 million in equity before the deal concludes.

TXNM Energy currently provides electricity services to around 800,000 customers across New Mexico and Texas. Its regulated utility model offers stable and predictable returns, aligning with Blackstone’s focus on long-term infrastructure investments. Importantly, the acquisition will be entirely funded with equity, avoiding any new leverage on TXNM’s balance sheet.

This transaction follows a previously blocked acquisition attempt by another firm in 2021 due to regulatory concerns. Unlike that effort, Blackstone has committed to maintaining TXNM’s local management and ensuring that customer rates remain regulated by state authorities.

The acquisition highlights Blackstone's confidence in the region’s growing energy demands, fueled by data center expansion and broader electrification trends. By integrating TXNM Energy into its portfolio, Blackstone aims to capitalize on market growth and support critical infrastructure development.

Following the deal’s completion, Executive Chair Pat Collawn will retire. Don Tarry, currently serving as Chair and CEO, will continue in his role as President and CEO. The transaction remains subject to regulatory approvals and other customary closing conditions.