An arm of private-equity titan Blackstone Inc. has agreed to buy TXNM Energy Inc. for about $5.7 billion in cash. The deal is expected to close in the second half of next year.
“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,” Pat Collawn, TXNM’s chair and CEO, said in a statement. “We are excited to form this long-term partnership with Blackstone Infrastructure to build upon these successes.”
Including TXNM’s preferred stock and net debt, the value of Blackstone’s announced deal rises to $11.5 billion. That’s about $3 billion more than what Avangrid agreed to pay for TXNM (then still called PNM Resources) in the fall of 2020. Avangrid eventually abandoned its plan in early 2024 after opposition from New Mexico regulators to the companies’ proposed community benefits agreement.
Speaking to analysts May 19, Collawn said the TXNM team will take a different approach to seeking regulatory approvals for the Blackstone purchase. The plan, she said, is to engage more deeply with various stakeholders before submitting plans with New Mexico regulators.
Blackstone Infrastructure has about $60 billion in assets under management, most of them in North America. Among its portfolio companies is renewable-energy developer Invenergy, which has built about 190 wind, solar and storage projects. Blackstone also owns about 5% of FirstEnergy Corp. and in early 2024 invested more than $2.1 billion in NiSource Inc.’s Northern Indiana Public Service Co. LLC.
“We are long-term investors who back industry-leading companies using our perpetual capital to support economic development,” Sean Klimczak, global head of Blackstone Infrastructure, said in the statement. “We look forward to having the opportunity to engage in meaningful dialogue about how we can create win-win, growth-oriented investments” in Texas and New Mexico.
Word of the Blackstone sale plan comes days after Collawn said she’ll step aside as CEO this summer and have President and COO Don Tarry take over. Once the Blackstone deal is completed, Collawn will step down as chair as well.
Shares of TXNM (Ticker: TXNM) rose more than 7% to about $56.70 after the deal’s announcement. They’re now up nearly 20% over the past six months.
