TPG has reached an agreement to acquire a majority ownership position in Sabre Industries from Blackstone, with the deal valuing the power infrastructure company at around $3.5 billion, according to people familiar with the matter.
Sabre Industries, headquartered in Texas, manufactures parts used in electricity and communications networks and employs approximately 2,800 people. The company’s most substantial market is the utility sector, the firms said in a joint statement.
Blackstone will not fully exit Sabre. Instead, the firm will retain a significant minority stake following TPG’s purchase, maintaining an ongoing ownership position in the business.
Officials close to the transaction indicated that Blackstone’s original acquisition of Sabre in 2021 is now worth about four times its initial investment based on the price TPG is paying. That multiple was described by a person familiar with the matter.
The move comes against a backdrop in which the expansion of data centers to support artificial intelligence and cloud computing workloads has drawn substantial private capital. Industry participants expect additional investment will be needed to build the supporting infrastructure for those technologies.
Blackstone President and Chief Operating Officer Jon Gray commented this week that placing capital into the so-called 'picks and shovels' of the AI megatrend - referring to data centers and the systems they depend on - represents the most secure investment approach. That framing aligns with rising investor interest in firms supplying infrastructure components and services related to electrification and communications.
Embedded in market commentary was a question directed at investors regarding Blackstone equity - 'Should you be buying BX right now?' - followed by a reference to ProPicks AI, a tool that evaluates companies using a broad set of financial metrics and algorithmic screening. The commentary highlighted previous notable winners identified by that tool but did not provide further detail about how Blackstone’s shares are positioned following the Sabre transaction.
Context and next steps
The companies released limited details on transaction mechanics beyond ownership changes and the valuation cited by those familiar with the deal. Additional specifics about timing, financing and regulatory approvals were not disclosed in the statements provided.