Blackstone Infrastructure has signed a definitive agreement to acquire US-based utility firm TXNM Energy in the transaction valued at $11.5bn including net debt. Under the terms, Blackstone will pay $61.25 per share in cash upon closing.
Based in Albuquerque, TXNM Energy operates as an energy holding company providing electricity to more than 800,000 customers in Texas and New Mexico.
The acquisition will be fully funded through equity, with Blackstone Infrastructure indicating that it does not plan to increase TXNM Energy’s leverage levels to finance the deal. Additionally, Blackstone will invest $400m in TXNM Energy by purchasing 8 million newly issued shares at $50 per share through a private placement agreement. This investment aims to bolster TXNM Energy’s growth initiatives and is anticipated to be finalised by June 2025.
TXNM Energy, which operates through its subsidiaries PNM and TNMP, will maintain its commitment to providing reliable energy solutions to its customers. The company will continue to be regulated by the New Mexico Public Regulation Commission (NMPRC) and the Public Utility Commission of Texas (PUCT).
The management structure of TXNM Energy, PNM, and TNMP will remain intact, with local operations continuing in New Mexico and Texas. The current leadership team will stay in place, ensuring continuity for customers, regulators, and other stakeholders. The companies will also uphold their commitments to the local workforce and existing labour contracts with the International Brotherhood of Electrical Workers.
To further support its growth trajectory, TXNM Energy plans to issue an additional $400m in equity prior to the transaction’s closing.
TXNM Energy chair and CEO Pat Collawn said: “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. We’ve integrated new resources to supply over two-thirds of PNM electricity needs with carbon-free energy and supported double-digit demand growth at TNMP.
“We are excited to form this long-term partnership with Blackstone Infrastructure to build upon these successes. 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.”
Dividends for TXNM Energy shareholders are expected to remain in effect until the transaction closes, pending approval from the company’s Board of Directors. The acquisition has received unanimous approval from TXNM Energy’s Board and is projected to close in the second half of 2026, contingent upon shareholder approval and various regulatory clearances.
In January this year, Blackstone’s energy-focused private equity business Blackstone Energy Transition Partners ageed to acquire the 774MW Potomac Energy Center in the US.
