Blackstone to Acquire Trystar, Premier Provider of Backup Power Solutions

Rhea-AI Summary

Blackstone (NYSE: BX) has announced its intention to acquire Trystar, a leading provider of electrical equipment for backup power solutions. Trystar specializes in designing and manufacturing critical electrical power solutions for various sectors including data centers, industrial, commercial, healthcare, and utilities. The acquisition aligns with Blackstone's focus on energy transition investments and aims to leverage its global scale and expertise to enhance Trystar's market position.

The deal is expected to capitalize on growing demand for electricity and increased prioritization of on-site power resiliency. Blackstone sees Trystar's innovative solutions as well-positioned to benefit from these market trends. The partnership aims to build a leading platform serving the distributed power generation market and facilitate the energy transition.

Positive

• Acquisition of a leading provider in the critical electrical power solutions market
• Expansion into growing sectors such as data centers and healthcare
• Alignment with energy transition trends and increasing demand for electricity
• Potential for market expansion leveraging Blackstone's global scale and expertise

Negative

• None.

Financial Analyst

The acquisition of Trystar by Blackstone marks a significant move in the energy sector, specifically in the realm of backup power solutions. For investors, this highlights Blackstone's continued focus on the energy transition, where reliable, sustainable power is crucial. Blackstone's acquisition strategy often seeks companies with strong market positions and growth potential and Trystar fits this profile well.

Short-term: The immediate impact on Blackstone's stock may be modest, as the market digests the implications of this acquisition. However, the potential for Trystar to expand under Blackstone's stewardship is a positive signal. Investors should look for quarterly updates on how Trystar’s integration affects Blackstone's revenues and cost efficiencies.

Long-term: This acquisition can significantly enhance Blackstone's portfolio in the energy sector, positioning it to capitalize on the growing demand for energy resiliency and renewable power solutions. Blackstone's extensive resources and expertise could drive substantial growth in Trystar’s market share, benefiting the company and its investors in the long run.

Terms like energy transition refer to the global shift from fossil fuels to renewable energy sources, a trend poised to transform the energy market. Investors should see this acquisition as a strategic bet on this evolving landscape, potentially yielding high rewards as the market for sustainable solutions grows.

Market Research Analyst

This deal underscores a critical trend in the market: the increasing importance of power reliability and resiliency. Trystar’s products are vital in ensuring uninterrupted power supply, a growing concern as businesses and infrastructure become more dependent on continuous power. Moreover, with the rise in data centers, industrial automation and healthcare facilities, the demand for backup power solutions is on the rise.

From a market research perspective, Trystar’s innovative solutions are well-aligned with the broader market trends of decentralizing power generation and increasing reliance on renewable energy sources. This acquisition could position Blackstone as a key player in addressing these demands, enhancing its market standing and potentially leading to new business opportunities.

Investors should note the potential for synergies between Blackstone’s existing investments in the energy sector and Trystar’s product offerings, which could result in improved market penetration and competitive advantages.

The concept of mission-critical power management solutions refers to systems essential for the continual operation of important services, such as hospitals, data centers and industrial operations. These solutions ensure that these services remain operational even during power outages, highlighting why Blackstone’s investment in Trystar is strategically sound.

NEW YORK & FARIBAULT, Minn.--(BUSINESS WIRE)-- Blackstone (NYSE: BX) announced today that private equity funds affiliated with Blackstone (“Blackstone”) entered into a definitive agreement to acquire Trystar, a premier provider of electrical equipment used for backup power solutions.

Trystar designs and manufactures critical electrical power solutions for data center, industrial, commercial, healthcare, and utility end markets. The company’s product offerings help to ensure power reliability, which is of increasing importance amidst the energy transition.

“We’re thrilled to be partnering with the Trystar management team to drive the next phase of growth for the company. Building on our track record of energy transition investments, we look forward to leveraging Blackstone’s global scale and deep domain expertise to further enhance Trystar’s market position,” said Bilal Khan, Senior Managing Director at Blackstone Energy Transition Partners.

Mark Zhu, Managing Director at Blackstone Energy Transition Partners, added: “Trystar’s innovative and mission-critical power management solutions are well-positioned to benefit from several thematic tailwinds including growing demand for electricity and end-users prioritizing on-site power resiliency.”

“We are tremendously excited about partnering with Blackstone. Together, we can build a leading platform serving the distributed power generation market and lead the charge in facilitating the energy transition,” said AJ Smith, CEO of Trystar.

Kirkland & Ellis LLP served as legal counsel to Blackstone. Houlihan Lokey acted as financial advisor, and Faegre Drinker Biddle & Reath LLP served as legal counsel to Trystar.

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 Blackstone Energy Transition Partners
Blackstone Energy Transition Partners is Blackstone’s energy-focused private equity business, a leading energy investor with a successful long-term record, having invested over $21 billion of equity globally across a broad range of sectors within the energy industry. Our investment philosophy is based on backing exceptional management teams with flexible capital to provide solutions that help energy companies grow and improve performance, thereby delivering cleaner, more reliable, and affordable energy to meet the needs of the global community. In the process, we build stronger, larger scale enterprises, create jobs, and generate lasting value for our investors, employees, and all stakeholders.

About Trystar
Trystar LLC is a leading provider of electrical power solutions for the commercial, industrial, and utility markets. We are a vertically integrated manufacturer with the custom engineering expertise and customer-centric approach that provides our customers with both the best solution and the best experience. Established in 1991, Trystar is headquartered in Faribault, Minnesota with additional manufacturing and offices located throughout the United States and Canada. Trystar’s diverse portfolio of offerings includes a wide range of safe, reliable, permanent, and portable power solutions that serve diverse industry sectors including healthcare, data centers, utilities, entertainment, education, government, and commercial buildings. Trystar products are built-to-last using the highest quality materials, top-of-the-line production equipment and industry-leading engineering practices. At Trystar, people make the difference, delivering unmatched value and customer support. Trystar is Shaping the Future of Power!

View source version on businesswire.com: https://www.businesswire.com/news/home/20240715847772/en/

Blackstone

Matt Anderson

(518) 248-7310

Matthew.Anderson@blackstone.com

Mariel Seidman-Gati

(646) 482-3712

Mariel.SeidmanGati@blackstone.com

Trystar

Marketing@trystar.com

Source: Blackstone

FAQ

What company is Blackstone (BX) acquiring in the backup power solutions sector?

Blackstone (BX) is acquiring Trystar, a premier provider of electrical equipment used for backup power solutions.

What markets does Trystar serve with its electrical power solutions?

Trystar serves data center, industrial, commercial, healthcare, and utility end markets with its critical electrical power solutions.

How does the Trystar acquisition align with Blackstone's investment strategy?

The acquisition aligns with Blackstone's focus on energy transition investments and leverages their global scale and domain expertise to enhance Trystar's market position.

What are the key market trends supporting Blackstone's acquisition of Trystar?

Key trends include growing demand for electricity, increased prioritization of on-site power resiliency, and the ongoing energy transition.