PLANO, Texas & NEW YORK - Blackstone (NYSE: BX), the world's largest alternative asset manager, has acquired a majority investment in Westwood Professional Services, Inc., a prominent engineering and design firm. The transaction sees Blackstone's private equity funds taking over from Endurance Partners, while Westwood's management and employee shareholders will maintain a minority interest.
Westwood, known for its engineering design services, plays a significant role in the development of renewable energy projects and infrastructure across the United States. The company boasts a workforce exceeding 1,600 and has been a key player in the renewables, power, real estate, and public infrastructure sectors for over 50 years.
Senior Managing Director Darius Sepassi and Managing Director Mitchell Nimocks of Blackstone Energy Transition Partners expressed their enthusiasm for the partnership. They highlighted Westwood's integral role in supporting the growth of renewable energy and power systems in the U.S., and the opportunity to leverage Blackstone's global scale to further Westwood's growth.
David Foley, Global Head of Blackstone Energy Transition Partners, noted that the investment in Westwood builds on Blackstone's strategy to support the energy transition, with recent investments in companies like Trystar and Sediver. Since June, Blackstone Energy Transition Partners has committed approximately $1.3 billion in equity investments in this sector.
Bryan Powell, CEO of Westwood, acknowledged the support of Endurance Partners in scaling the company to its current stature and expressed excitement about the future growth potential with Blackstone.
The financial terms of the deal were not disclosed. Morgan Stanley & Co. LLC and Kirkland & Ellis represented Blackstone as financial and legal advisors, respectively. Westwood received financial advice from Perella Weinberg Partners LP and legal counsel from Gibson, Dunn & Crutcher LLP.
This strategic move is expected to enhance Westwood's capabilities in its key markets, which are anticipated to experience long-term growth. The partnership is based on a press release statement and aims to position Westwood for continued expansion in its specialized fields.
In other recent news, Carlyle Group (NASDAQ:CG) reported a 11.7% decline in its second-quarter distributable earnings to $343 million, mainly due to lower cash generation from asset sales. However, the firm saw a record high of $273 million in fee-related earnings, a 32% increase from the previous year. Total assets under management rose to $435 billion, marking a 13% increase from the prior quarter. The firm also secured $12.4 billion from investors in a successful fundraising quarter.
On a different note, Pondera Holdings is exploring potential options for Whisker, including possibly selling its majority share, which could value the company at approximately $1 billion. Whisker is working with Bank of America and Houlihan Lokey (NYSE:HLI) to evaluate its strategic options.
Meanwhile, Blackstone Group (NYSE:BX) reported a strong second quarter with GAAP net income reaching $948 million and distributable earnings of $1.3 billion, or $0.96 per share. The firm deployed a record $34 billion during the quarter, the highest in two years. Blackstone's assets under management grew 7% year-over-year to $1.1 trillion. The firm expects a favorable environment for investment and real estate value appreciation due to a decline in construction starts and lower cost of capital.
InvestingPro Insights
Blackstone (NYSE: BX), in its recent acquisition of Westwood Professional Services, Inc., demonstrates its strategic investment approach within the energy sector. The firm's financial standing and market performance provide a backdrop for understanding the potential impact of this transaction. According to InvestingPro data, Blackstone has a robust market capitalization of $159.16 billion, underscoring its significant presence in the investment world.
InvestingPro Tips suggest that Blackstone's net income is expected to grow this year, which could be indicative of the firm's ability to generate value from its investments, such as the one in Westwood. Additionally, the company has maintained dividend payments for 18 consecutive years, reflecting a strong commitment to shareholder returns. This could reassure investors about the stability of their investments in Blackstone amidst new ventures and acquisitions.
Despite recent volatility, with the stock taking a hit over the last week, Blackstone's revenue growth over the last twelve months has been impressive at 48.12%. This suggests that the company is expanding its revenue streams effectively, which could be further bolstered by the addition of Westwood's engineering and design services to its portfolio. Moreover, Blackstone's PEG Ratio, standing at 0.72, implies potential for future earnings growth at a rate that may justify its current stock price.
For readers interested in deeper analysis, there are additional InvestingPro Tips available, providing a comprehensive view of Blackstone's financial health and market performance. These insights can be particularly valuable for stakeholders assessing the impact of the Westwood acquisition on Blackstone's future prospects.
Overall, Blackstone's strategic investments in the energy sector, combined with its financial metrics and commitment to shareholder returns, position the company as a potentially attractive option for investors looking to engage with the growing renewable energy and infrastructure markets.
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