Merrillville-based NiSource has agreed to sell a $2.15 billion stake in NIPSCO to Blackstone Infrastructure Partners' affiliate infrastructure group.
The agreement, which is expected to close by the end of the year, also includes a $250 million equity commitment for ongoing capital improvements.
NiSource will retain an 80.1% stake in NIPSCO and continue to operate the electric and gas distribution company.
“With this transaction, our commitment to Indiana remains unchanged, and we will be able to drive further sustainable growth for our stakeholders,” said NiSource President and CEO Lloyd Yates in a press release. “This financing transaction will have no impact on NIPSCO's current strategic direction or on our commitment to our gas and electric customers in Indiana.”
The capital infusion will be used to support NiSource's efforts to transition from coal to renewable sources of energy by 2028. NIPSCO plans to spend $3.5 billion to realize that goal.
Blackstone is committed to helping make that happen, and making the gas and electric grid more resilient.
“This agreement underscores Blackstone's commitment to decarbonization to create value for our investors and our desire to help facilitate the reindustrialization of the Midwest,” said Sean Klimczak, global head of infrastructure at Blackstone. “Our belief in Indiana remains steadfast, and we are excited to partner with NiSource and NIPSCO, one of the fastest growing utilities in the country, to support the vital role that NIPSCO plays in communities across Northern Indiana.”
New York-based Blackstone is an alternative asset manager with $991 billion in assets under its management.
