NEW YORK & FARIBAULT, Minn. - Blackstone (NYSE: BX), a global alternative asset manager, has reached a definitive agreement to acquire Trystar, a manufacturer of electrical power solutions. The transaction, announced today, involves private equity funds affiliated with Blackstone acquiring the Minnesota-based company, which specializes in products for backup power.
Trystar, established in 1991, provides a range of power reliability solutions across various sectors, including data centers, healthcare, and utilities. Blackstone aims to leverage its global scale and expertise in the energy sector to enhance Trystar's market position and capitalize on the growing demand for electricity and on-site power resiliency.
Bilal Khan, Senior Managing Director at Blackstone Energy Transition Partners, expressed enthusiasm for the partnership, which is poised to drive Trystar's growth, reinforcing Blackstone's commitment to investments that support the energy transition. Mark Zhu, Managing Director at Blackstone Energy Transition Partners, also noted Trystar's favorable positioning to benefit from the increasing need for reliable energy solutions.
AJ Smith, CEO of Trystar, welcomed the partnership, anticipating the combined efforts to lead in the distributed power generation market and facilitate the energy transition.
Legal counsel for Blackstone was provided by Kirkland & Ellis LLP, while Trystar was advised by Houlihan Lokey (NYSE:HLI), with Faegre Drinker Biddle & Reath LLP serving as their legal counsel.
Blackstone, with over $1 trillion in assets under management, has a diverse portfolio that includes real estate, private equity, and infrastructure among other investment strategies. Blackstone Energy Transition Partners is the firm's energy-focused private equity business, with a history of substantial investments in the energy industry.
This acquisition is part of Blackstone's strategy to back exceptional management teams and provide solutions that support the growth and performance improvement of energy companies. The partnership is expected to create jobs and generate value for investors, employees, and stakeholders.
The information in this article is based on a press release statement.
In other recent news, Blackstone Group (NYSE:BX) has seen a flurry of activity in its financial projections and business operations. Jefferies has adjusted its price target for Blackstone, lowering it to $138 while maintaining a buy rating.
The firm's forecast for Blackstone's Fee-Related Earnings stands at $1.32 billion, a slight uptick from the previous quarter. Blackstone's investment in both the Private Equity and Real Estate sectors, including an early second-quarter close of the company's investment in AIRC, has been noted.
Blackstone has also undergone organizational changes, moving its GP stakes business to the Private Equity segment and shifting operations managed by Harvest Fund Advisors LLC to the Multi-Asset Investing segment.
These changes aim to streamline operations and provide clearer financial information to investors. In the merger and acquisition space, Blackstone sold Alinamin, a Japanese pharmaceutical company, to MBK Partners for approximately $2.17 billion but will maintain a minority stake in the company.
Blackstone's takeover proposal for Infocom, a Japanese digital comic distributor, is under review. The acquisition, valued at about $1.78 billion, could represent Blackstone's largest investment in Japan to date.
Citi has maintained a neutral stance on Blackstone's stock, with the price target unchanged at $124.00, and slightly reduced its second-quarter 2024 earnings per share estimate for Blackstone to $1.04.
Lastly, Blackstone plans to double the size of its European private credit fund within the next year, following a successful raise of 1 billion euros ($1.07 billion). These are recent developments in Blackstone's operations and strategic direction.
InvestingPro Insights
As Blackstone (NYSE: BX) moves forward with its acquisition of Trystar, it's important for investors to consider the financial health and market position of the company. InvestingPro data provides a snapshot of Blackstone's current market performance and potential future growth.
Blackstone's market capitalization stands at a robust $161.05 billion, reflecting the company's substantial scale in the global investment market. Despite a high P/E ratio of 46.54, Blackstone is trading at a low PEG ratio of 0.19 for the last twelve months as of Q1 2024, indicating that its earnings growth rate is expected to outpace its P/E ratio significantly. This could suggest that investors are likely to see greater value in the future, particularly as net income is forecasted to grow this year, which is one of the InvestingPro Tips for Blackstone.
Another key metric for investors to note is the company's strong revenue growth, which surged by 129.76% over the last twelve months as of Q1 2024. This is complemented by a substantial operating income margin of 48.16%, demonstrating Blackstone's efficiency in converting revenues into actual profit.
Investors should also be aware that Blackstone has maintained its dividend payments for 18 consecutive years, a testament to the firm's commitment to shareholder returns. The dividend yield currently stands at 2.51%, with the last dividend ex-date recorded on April 26, 2024.
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