Blackstone Energy Transition Partners Announces Majority Investment in Westwood Professional Services, Inc., Leading Engineering & Consulting Firm

Rhea-AI Summary

Blackstone (NYSE: BX) has agreed to make a majority investment in Westwood Professional Services, a leading engineering and design firm specializing in renewables, power, real estate, and public infrastructure. Blackstone will acquire its position from Endurance Partners, with Westwood's management team retaining a minority stake. Westwood, with over 1,600 employees, provides front-end engineering design services for renewable energy generation and infrastructure development across the United States.

This investment aligns with Blackstone's focus on energy transition, following recent investments in Trystar and Sediver. With this signing, Blackstone Energy Transition Partners will have committed approximately $1.3 billion in control-oriented equity investments in the energy transition sector since June. The partnership aims to leverage Blackstone's global resources to expand Westwood's capabilities and client partnerships.

Positive

• Blackstone acquiring majority stake in Westwood, a leading engineering firm in renewables and infrastructure
• Westwood has a large team of 1,600+ employees, indicating significant operational scale
• Investment aligns with Blackstone's energy transition strategy, committing $1.3 billion in the sector
• Partnership aims to expand Westwood's capabilities and client relationships

Negative

• None.

Insights

Financial Analyst

Blackstone's majority investment in Westwood Professional Services is a strategic move in the energy transition sector. This deal aligns with Blackstone's recent focus on energy transition investments, with $1.3 billion committed to control-oriented equity investments in this space since June. The transaction's undisclosed terms make it challenging to assess immediate financial impact, but Blackstone's track record suggests potential for significant value creation.

Westwood's expertise in renewables and power infrastructure positions it well in a growing market. The company's 1,600+ employee base and established presence in key sectors indicate a robust platform for expansion. This investment could accelerate Westwood's growth, potentially leading to increased market share and revenue in the medium to long term.

For Blackstone investors, this move diversifies the firm's portfolio in the rapidly evolving energy transition space, potentially offering attractive returns as the sector grows. However, execution risks and market dynamics in the renewable energy sector should be closely monitored.

Energy Transition Specialist

Blackstone's investment in Westwood is a significant play in the energy transition landscape. Westwood's focus on renewable energy generation and power grid infrastructure aligns perfectly with the ongoing shift towards cleaner energy sources. This move positions Blackstone to capitalize on the increasing adoption of renewables and the necessary upgrades to power systems across the U.S.

The investment builds upon Blackstone's recent acquisitions of Trystar and Sediver, creating a comprehensive portfolio of companies providing critical services for energy transition. This strategic approach could give Blackstone a competitive edge in facilitating the development of more reliable, affordable and cleaner energy infrastructure.

For the broader energy transition market, this deal signals continued strong interest from major private equity players, potentially accelerating the pace of renewable energy adoption and grid modernization efforts. It's a positive indicator for the sector's growth prospects and could stimulate further investments in related technologies and services.

Market Research Analyst

The Blackstone-Westwood deal highlights the growing attractiveness of engineering and consulting firms specializing in renewable energy and infrastructure. This trend is driven by increasing public and private investments in sustainable energy solutions and infrastructure upgrades. Westwood's diverse focus across renewables, power, real estate and public infrastructure positions it well to capture opportunities across multiple high-growth sectors.

Market dynamics suggest continued strong demand for Westwood's services. The U.S. is experiencing a surge in renewable energy projects, grid modernization efforts and infrastructure development, fueled by both policy initiatives and private sector commitments to sustainability. This environment could provide significant tailwinds for Westwood's growth under Blackstone's ownership.

For investors, this deal underscores the potential value in companies supporting the transition to cleaner energy and modernized infrastructure. It may prompt increased scrutiny of similar firms in the sector, potentially driving up valuations for companies with comparable expertise and market positioning.

PLANO, Texas & NEW YORK--(BUSINESS WIRE)-- Blackstone (NYSE: BX) announced today that private equity funds affiliated with Blackstone (“Blackstone”) have agreed to make a majority investment in Westwood Professional Services, Inc. (“Westwood”), a leading engineering and design firm focused on renewables, power, real estate and public infrastructure end markets. Blackstone will acquire its position in Westwood from Endurance Partners, with Westwood’s management team and employee shareholders retaining a minority stake. With a team of more than 1,600 employees, Westwood provides front-end engineering design services supporting the development of renewable energy generation, investment in the power grid and the continued buildout of public and private infrastructure across the United States.

Darius Sepassi, Senior Managing Director, and Mitchell Nimocks, Managing Director, at Blackstone Energy Transition Partners, said: “Westwood provides crucial expertise and resources to support the increasing adoption of renewables and investment in power systems throughout the U.S. and is well positioned to continue building upon its impressive growth. We look forward to combining the power of Blackstone’s global scale and resources with Westwood’s talent to expand and enhance its valued partnerships with new and existing clients across the renewables, power, land development and public infrastructure value chains.”

David Foley, Global Head of Blackstone Energy Transition Partners, added: “Our partnership with the exceptional Westwood management team builds upon our recent energy transition investments including Trystar and Sediver, providing critical services and equipment needed to facilitate the transition to more reliable, affordable and cleaner energy. With the signing of this investment, Blackstone Energy Transition Partners will have committed approximately $1.3 billion in control-oriented equity investments in the energy transition since June.”

“Throughout its 50+ year history, Westwood has sought to enhance communities by providing critical engineering and design services to our clients,” said Bryan Powell, CEO of Westwood. “We are excited about this new partnership with Blackstone as it positions the Company to continue expanding its capabilities in Westwood’s key end markets of renewable energy, power, land development, and public infrastructure, which are each poised to benefit from long-term growth tailwinds. We appreciate the support of Endurance Partners in helping scale Westwood into the business that it is today.”

Gerald Parsky, Chairman of Endurance, and Larry Bossidy, Chairman of Westwood, said: “Westwood is an established leader in multi-disciplined professional services for the AEC industry, and we are pleased to have invested in and partnered with this management team, who have built a business that is poised to flourish in their new partnership.”

Terms of the transaction were not disclosed. Blackstone was represented in the transaction by Morgan Stanley & Co. LLC as financial advisor and Kirkland & Ellis as legal advisor. Perella Weinberg Partners LP served as exclusive financial advisor to Westwood. Gibson, Dunn & Crutcher LLP acted as counsel to Westwood and Endurance Partners.

About Blackstone

Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

About Westwood Professional Services, Inc. (Westwood)

Westwood is a leading, award-winning, full-service, professional engineering firm specializing in wind energy, solar energy, energy storage, power delivery, EV infrastructure, commercial, institutional, residential, and public infrastructure projects. Westwood was established in 1972. Through a focus on its people, culture, and clients, Westwood has quickly expanded to serve clients across the nation from multiple US offices. View more Westwood facts.

About Endurance Partners

Endurance is an investment group focused on partnering with exceptional management teams, bringing capital and resources to growing middle market companies, with a flexible mandate to hold for the long-term. Endurance brings together a world class group of executives with decades of private and public company leadership in the financial services, investment banking, private equity, and industrial sectors. Further information is available at www.endurance-partners.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807897752/en/

Mariel Seidman-Gati

(646) 482-3712

Mariel.SeidmanGati@blackstone.com

Source: Blackstone

FAQ

What is Blackstone's investment in Westwood Professional Services?

Blackstone (NYSE: BX) has agreed to make a majority investment in Westwood Professional Services, a leading engineering and design firm focused on renewables, power, real estate, and public infrastructure markets.

How many employees does Westwood Professional Services have?

Westwood Professional Services has a team of more than 1,600 employees.

What is the total amount Blackstone Energy Transition Partners has committed to energy transition investments?

With this investment, Blackstone Energy Transition Partners will have committed approximately $1.3 billion in control-oriented equity investments in the energy transition sector since June.

What are Westwood's key end markets mentioned in the press release?

Westwood's key end markets mentioned in the press release are renewable energy, power, land development, and public infrastructure.