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Blackstone’s Affiliates Plan To Acquire Sabre Industries
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Blackstone’s Affiliates Plan To Acquire Sabre Industries

Blackstone affiliated private equity funds are planning to snap up Sabre Industries, Inc. The equity funds are in talks to acquire the Jordan Company’s electrical infrastructure, supporting an accelerated transition to cleaner and affordable energy.

Once acquired, Sabre will retain its name and operate as a Blackstone (BX) portfolio company. The equity funds are acquiring a company that has established itself as a leading designer and manufacturer of overhead steel poles, battery storage solutions, and other electrical utility industry services. Its products are at the heart of strengthening and enhancing electrical transmission in the US.

Blackstone Senior Managing Director John-Paul Munfa stated, “We are excited about investing in Sabre, as the company is well-positioned to benefit from increasing investment by electrical utilities and telecom industry participants in their network infrastructure.”

Blackstone shares are up 20.9% year to date after gaining 15.8% in 2020. (See Blackstone stock analysis on TipRanks)

The proposed acquisition of Sabre builds on Blackstone’s prior investments in the utility sector. In the recent past, the company has acquired GridLiance and Custom Truck One Source. However, Sabre becomes the company’s most recent investment in critical energy infrastructure and the essential services needed to supply affordable and clean energy. The acquisition affirms Blackstone’s commitment to investing in entrepreneurs and businesses that have the potential to spearhead America’s energy transition.

In March, Oppenheimer’s analyst Chris Kotowski downgraded the stock to a Hold from an Buy. The analyst has a $71 price target on the stock, implying 9.4% downside potential to current levels.

“We stress that there is no fundamental change in our estimates or outlook. We continue to view the company as a solid growth story and appropriate for long-term growth-oriented investors not sensitive to valuation,” stated Mr. Kotowski.

Overall, Blackstone stock scores a Moderate Buy consensus rating by Wall Street analysts on the back of six Buys and four Holds. The average analyst price target of $78.33 implies that shares are fully priced at current levels.

The stock scores a solid 8 out of 10 on TipRank’s Smart Score tool which implies strong potential of beating market expectations.

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