Alternative asset management firm TPG announced an agreement by its climate investing platform TPG Rise Climate to acquire a majority stake in power infrastructure provider Sabre Industries from private equity firm Blackstone, citing the company’s capabilities to address opportunities from the modernization of the U.S. electrical grid, and growing energy demand from data centers.
According to a Reuters report citing people familiar with the deal, the transaction values Sabre at approximately $3.5 billion.
Founded in 1977, Texas-based Sabre provides highly-engineered critical infrastructure solutions for power utilities, telecom companies, and data centers, including advanced electrical transmission and distribution structures, wireless towers, integrated electrical enclosures, and other components.
In a post announcing the deal, TPG said that the acquisition “underscores our focus on backing the leading companies that are modernizing America’s electrical grid for the new economy.”
TPG Partner Steven Mandel said:
“We believe there is a significant opportunity for leading equipment providers to meet rising electricity demand and modernize a grid increasingly vulnerable to extreme weather events. Sabre’s leadership in transmission and distribution, combined with its specialized enclosures for the data center market, positions the Company at the heart of these essential trends.”
Sabre CEO Timothy Rossetti added that TPG Rise Climate’s expertise in areas including grid modernization, electrification and data centers “makes them the right partner to support the continued scaling and manufacturing enhancements across all aspects of our business.”
Blackstone acquired Sabre in 2021, and will retain a significant minority stake in the company following the transaction, which is expected to close by the second quarter of 2026.
JP Munfa, Senior Managing Director at Blackstone, said:
“During Blackstone’s investment, Sabre has advanced its longstanding position as a trusted provider of highly engineered, mission-critical solutions for the infrastructure that support our daily lives – significantly increasing production capacity in its utility segment, expanding its integrated enclosure offering into the data center sector, and growing backlog to record levels, all while maintaining the company’s longstanding track record of superior quality, customer service, and engineering certainty.”
