M&A Deal Summary

PNM Resources Acquires TNP Enterprises

On June 6, 2005, PNM Resources, Inc. acquired utilities company TNP Enterprises, Inc. from Laurel Hill Capital Partners, LLC, Annex Capital and American Securities for 189M USD

Acquisition Highlights
  • This is PNM Resources’ 1st transaction in the Utilities sector.
  • This is PNM Resources’ 2nd largest (disclosed) transaction.
  • This is PNM Resources’ 1st transaction in the United States.
  • This is PNM Resources’ 1st transaction in Texas.

M&A Deal Summary

Date 2005-06-06
Target TNP Enterprises, Inc.
Sector Utilities
Buyer(s) PNM Resources, Inc.
Sellers(s) Laurel Hill Capital Partners, LLC
Annex Capital
American Securities
Deal Type Add-on Acquisition
Deal Value 189M USD
Advisor(s) Goldman Sachs Investment Banking Division (Financial)
Milbank, Tweed, Hadley & McCloy LLP (Legal)

Target

TNP Enterprises, Inc.

Fort Worth, Texas, United States
website
TNP Enterprises, Inc. is a provider of community based electric service to 85 cities and more than 252,000 customers in Texas and New Mexico.

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Buyer(S) 1

Buyer

PNM Resources, Inc.

Albuquerque, New Mexico, United States

website


Category Company
Founded 1917
SectorUtilities
Employees1,708
Revenue 1.5B USD (2019)
DESCRIPTION
Entrance to PNM Resources' corporate headquarters in Albuquerque, New Mexico.
Entrance to PNM Resources' corporate headquarters in Albuquerque, New Mexico.

PNM Resources is an energy holding company that serves electricity to more than 730,000 homes and businesses in New Mexico and Texas. PNM Resources was established in 1917 and is based in Albuquerque, New Mexico.


DEAL STATS #
Overall 1 of 2
Sector (Utilities) 1 of 1
Type (Add-on Acquisition) 1 of 1
State (Texas) 1 of 2
Country (United States) 1 of 2
Year (2005) 1 of 1
Size (of disclosed) 2 of 2
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-04-18 The Twin Oaks Power facility

Texas, United States

The Twin Oaks Power facility, a 305-megawatt plant .Twin Oaks is considered to be one of the cleanest coal-fired power plants in Texas. The plant uses fluidized bed combustion technology and limestone injection to reduce nitrogen oxide and sulfur dioxide emissions.

Buy $480M

Seller(S) 3

SELLER

Laurel Hill Capital Partners, LLC

Jericho, New York, United States

website


Category Private Equity Firm
Founded 1998
SizeSmall
Type Sector Agnostic
DESCRIPTION

Laurel Hill Capital Partners LLC is an investment management firm that sponsors and co-invests with other financial firms in leveraged transactions. The firm typically pursues opportunities with small to mid-size companies. However, the firm is not limited to strictly growth-driven transactions, willing to invest in turnaround and distressed situations. Laurel Hill Capital Partners LLC was formed in 1998 and is based in Jericho, New York.


DEAL STATS #
Overall 1 of 1
Sector (Utilities) 1 of 1
Type (Add-on Acquisition) 1 of 1
State (Texas) 1 of 1
Country (United States) 1 of 1
Year (2005) 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2000-12-01 TNP Enterprises, Inc.

Fort Worth, Texas, United States

TNP Enterprises, Inc. is a provider of community based electric service to 85 cities and more than 252,000 customers in Texas and New Mexico.

Buy -
SELLER

Annex Capital

New York, New York, United States

website


Category Private Equity Firm
Founded 2004
SizeMiddle-Market
Type Sector Agnostic
DESCRIPTION

Annex Capital Management is a private investment firm focused on secondary private equity transactions and special situations opportunities. Annex is sector agnostic with an emphasis on consumer products, including food and beverage, information services, telecommunications and specialized manufacturing. Annex was formed in 2004 with the spinout of Dresdner Bank's direct investment portfolio into a new secondary firm backed by Coller Capital. Annex Capital is based in New York City.


DEAL STATS #
Overall 4 of 13
Sector (Utilities) 1 of 1
Type (Add-on Acquisition) 1 of 5
State (Texas) 1 of 2
Country (United States) 4 of 13
Year (2005) 1 of 2
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-04-18 Gateway HomeCare, Inc.

Melrose Park, Illinois, United States

Gateway HomeCare provides a wide range of nursing and thearpy services to at home patients recovering from illness and injury.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-10-17 Gardenburger Co.

Irvine, California, United States

Gardenburger Company is the brand name of a veggie burger. The company was originally incorporated as "Wholesome & Hearty Foods, Inc." in March 1985. Initial funding was given to founders Paul Wenner and Allyn Smaaland, as part of a venture capital investment program of Louisiana-Pacific Corp., whereby L-P took immediate controlling interest. A second round of venture capital financing was provided about a year later.

Sell -
SELLER

American Securities

New York, New York, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1994
PE ASSETS 20.0B USD
SizeMega
Type Sector Agnostic
DESCRIPTION

American Securities is a large private equity firm that typically partners with management when pursuing company acquisitions. American Securities typically targets US-based companies and generally seeks to commit $250 to $700 million per transaction. Areas of interest include consumer products, restaurants, healthcare, industrial, aerospace, defense, agriculture, environmental, paper/packaging, energy, and specialty chemicals. The Firm was originally formed in 1947 as the family office for William Rosenwald, an heir to the Sears Roebuck & Company, and began accepting outside investors in 1994. American Securities is headquartered in New York City.


DEAL STATS #
Overall 7 of 44
Sector (Utilities) 1 of 1
Type (Add-on Acquisition) 2 of 19
State (Texas) 1 of 4
Country (United States) 6 of 43
Year (2005) 2 of 3
Size (of disclosed) 10 of 13
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-02 VUTEk, Inc.

Meredith, New Hampshire, United States

VUTEk, Inc. is a manufacturer of superwide format digital printers for the global outdoor advertising industry.

Sell $281M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-28 El Pollo Loco, Inc.

Costa Mesa, California, United States

El Pollo Loco, Inc. is a fire-grilled chicken restaurant chain. The company is renowned for its masterfully citrus-marinated, fire-grilled chicken and handcrafted entrees using fresh ingredients inspired by Mexican recipes. The company operates restaurants across the Southwest and has a leading market position in Southern California. El Pollo Loco, Inc. was founded in 1980 and is based in Costa Mesa, California.

Sell -