TXNM Energy Inc. Acquisition by Blackstone Infrastructure
On May 19, 2025, TXNM Energy Inc. announced a significant development in its corporate trajectory. The company has entered into an agreement to be acquired by Blackstone Infrastructure for a total enterprise value of $11.5 billion. This acquisition marks a pivotal moment for TXNM Energy, a holding company that generates, transmits, and distributes electricity through its subsidiaries, serving customers in New Mexico and Texas.
Acquisition Details
The acquisition price is set at $61.25 per share in cash, which represents a 23% premium to TXNM’s 30-day volume-weighted average price (VWAP) as of March 5, 2025. This premium underscores the strategic value Blackstone sees in TXNM Energy’s operations and its role in the evolving energy landscape.
Blackstone Infrastructure plans to fund the acquisition entirely with equity, ensuring that TXNM’s current leverage levels remain unchanged. As part of the financing strategy, Blackstone will invest $400 million through a private placement of 8 million newly issued shares at $50 per share, expected in June 2025. Additionally, TXNM Energy will issue another $400 million of equity before the transaction closes.
The transaction is anticipated to close in the second half of 2026, contingent upon obtaining necessary regulatory approvals and shareholder consent.
Operational Continuity and Management
Post-acquisition, TXNM Energy, along with its subsidiaries PNM and TNMP, will continue to be locally managed and operated. The headquarters will remain in New Mexico and Texas, ensuring continuity in leadership and operations. Don Tarry, the current CEO, will continue to lead the company, while Pat Collawn will step down as Executive Chair upon closing.
Customer and Employee Considerations
The acquisition agreement includes commitments to maintain customer rates as regulated by state authorities. Additionally, TXNM Energy has pledged to develop a detailed package of benefits for customers, which will be formulated through transparent engagement with stakeholders in New Mexico and Texas.
Employees will be retained, and all union labor agreements will be honored, reflecting Blackstone’s commitment to the workforce and local communities. This approach aligns with Blackstone Infrastructure’s strategy of providing long-term, patient capital while maintaining strong investment-grade credit metrics.
Market Reaction and Analyst Insights
In response to the acquisition news, Citi raised its stock price target for TXNM Energy from $53 to $55, reflecting optimism about the company’s future under Blackstone’s ownership. The acquisition is seen as a strategic move to support the continued expansion of PNM and TNMP in a rapidly changing energy environment, facilitating economic development during New Mexico’s transition to clean energy and continued growth in Texas.
Conclusion
The acquisition of TXNM Energy by Blackstone Infrastructure represents a significant development in the utilities sector, highlighting the strategic importance of long-term infrastructure investments in the energy transition. With a focus on maintaining local operations and honoring commitments to employees and customers, the deal is poised to support TXNM Energy’s growth and stability in the evolving energy landscape.