Blackstone Inc. (BX) entered a merger agreement on May 19, 2025, to acquire TXNM Energy, Inc. (TXNM) in an all-cash deal valued at $11.5 billion.
As per the deal structure, Blackstone Infrastructure will acquire TXNM Energy for $61.25 per share in cash, representing a premium of 15.83% from the stock’s last close.
TXNM Energy is an Albuquerque-based energy holding company that delivers electricity to over 800,000 customers in Texas and New Mexico through its regulated utilities, PNM and TNMP.
Blackstone Infrastructure is a long-term investor in North American infrastructure, managing $60 billion in assets across sectors such as energy, transportation, digital infrastructure, and water and waste. It focuses on stable, large-scale assets with long-term growth potential, leveraging perpetual capital to support multi-decade partnerships with companies and communities.
In March, Bloomberg reported that TXNM was exploring a potential sale after receiving takeover interest from a suitor. At the time, the stock was trading at $47.87. The holding company for utilities in Texas and New Mexico soon attracted additional interest, with KKR (KKR) entering the race. Ultimately, however, Blackstone emerged as the successful bidder.
Blackstone Infrastructure is funding the entire purchase price with equity and does not intend to increase TXNM Energy’s leverage to finance the acquisition.
Blackstone Infrastructure is also investing $400 million through a private placement agreement. The investment involves the purchase of 8 million newly issued shares of TXNM Energy common stock at $50 per share, with the issuance expected to be completed in June 2025.
TXNM Energy also expects to issue an additional $400 million of equity prior to closing of the transaction, which is expected in the second half of 2026.
PNM and TNMP, TXNM Energy’s subsidiaries in New Mexico and Texas, respectively, will continue to be locally managed and operated, with headquarters maintained in their respective states. They will continue to be regulated by the state and federal commissions, including the New Mexico Public Regulation Commission (NMPRC) and the Public Utility Commission of Texas (PUCT).
Pat Collawn will step down as Executive Chair, while Don Tarry will lead TXNM Energy’s operations as President and CEO.
TXNM Energy was advised by Wells Fargo and Citi on the financial side, with Troutman Pepper serving as legal counsel. Blackstone received financial advice from RBC Capital Markets and J.P. Morgan, while Kirkland & Ellis acted as its legal advisor.
Blackstone Infrastructure is acquiring TXNM Energy at 12.99 times EBITDA.
For more comprehensive details about this M&A transaction, please visit the Deal Metrics page:
Deal Metrics for the acquisition of TXNM Energy, Inc. (TXNM) by Blackstone Inc. (BX)
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Editor’s Note: Baranjot Kaur contributed to this article