After two decades of little change, power demand in the US is expanding on the back of the construction of new data centers and factories and the overall electrification of the economy.
That’s given dealmaking a boost. Last week, NRG Energy Inc. agreed to pay US$12 billion, including debt, for assets with a generating capacity of 13 gigawatts, and Vistra Corp announced a US$1.9 billion acquisition for 2.6 gigawatts of gas-fire power plants. Nuclear plant owner Constellation Energy Corp. agreed in January to acquire closely held Calpine Corp for US$16.4 billion.
Formerly called PNM Resources Inc, TXNM owns two utilities serving more than 800,000 homes and businesses in New Mexico and Texas.
The company had agreed to sell itself to Avangrid Inc, a US unit of Spain’s Iberdrola SA, for US$4.3 billion in 2020 but the deal was scrapped after New Mexico regulators rejected the takeover.
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The acquisition by Blackstone’s infrastructure arm reflects a total enterprise value of US$11.5 billion, including net debt. Blackstone doesn’t anticipate increasing TXNM’s leverage levels to fund the purchase of the company.
Shares of TXNM jumped as much as 15% in pre-market trading in New York to US$60.94.
Wells Fargo & Co is lead financial adviser to TXNM, Citigroup Inc. is a financial adviser, and Troutman Pepper Locke LLP is legal adviser. For Blackstone Infrastructure, RBC Capital Markets is lead financial adviser, JPMorgan Chase & Co is a financial adviser and Kirkland & Ellis LLP is legal adviser.
