Blackstone Infrastructure has agreed to acquire TXNM Energy for cash of $61.25 per share, reflecting the total corporate value including net debt and preferred stock of $11.5 billion.

The acquisition provides huge funding for TXNM Energy's subsidiary PNM and TNMP to meet growing power infrastructure needs and clean energy targets.

PNM, a subsidiary of TXNM Energy, is working to transform its first-generation product portfolio to align with the clean energy targets of New Mexico in the U.S.

Meanwhile, TNMP is increasing its capital investment to cater to the high growth rate in its Texas service sector.

The deal is expected to strengthen the long-term capital needed to achieve these plans.

Sean Klimczak, global head of Blackstone Infrastructure, said: “We are delighted to work with Pat, Don and their amazing team to accelerate growth at TXNM and in New Mexico and Texas.

“We are long-term investors who use our permanent capital to support industry-leading companies to support economic development. We focus on being a great long-term partner in the community we invest in, and we look forward to the opportunity to have meaningful conversations between the two states on how to create a win-win to win, growth-oriented investment.”

Blackstone Infrastructure has $60 billion in asset management and is committed to investing in North American infrastructure and improving the performance of its portfolio companies.

The company plans to fund the acquisition entirely with equity and does not intend to increase the leverage level of TXNM Energy purchases.

Blackstone Infrastructure will also purchase $8 million of newly issued shares through a private placement agreement to buy $400 million of TXNM Energy for $50 per person.

The investment, which will be completed in June 2025, is intended to support TXNM Energy's growth plan.

TXNM Energy expects an additional $400 million in equity to fund its growth rate before the transaction closes.

The funds for the transaction will come from the assumptions of equity and existing debts, without the new debt issued as part of the transaction. Wells Fargo and Citi serve as financial advisors, while Troutman Pepper is legal advisor to TXNM Energy.

RBC Capital Markets and JP Morgan are advising Blackstone infrastructure, with Kirkland & Ellis providing legal counsel.

In the January 2025 related development, Blackstone's private equity fund Blackstone Energy Transition Partners agreed to acquire Virginia's 774MW Potomac Energy Center.