Blackstone Infrastructure will invest $2.41 billion in the Northern Indiana Public Service Company (NIPSCO), a unit of NiSource, the company announced Tuesday.
The deal involves Blackstone acquiring a 19.9% indirect non-controlling equity interest in NIPSCO for $2.16 billion, coupled with an additional $250 million equity commitment for ongoing capital needs.
NiSource said it plans to leverage the capital infusion to fortify its fastest-growing utility, address ongoing capital needs related to its renewable generation transition, and enhance its balance sheet.
NIPSCO's ambitious plan aims for a 0% coal-fired generation mix by 2028.
The investment aligns with Blackstone's commitment to decarbonization and support for the Midwest's reindustrialization, according to Sebastien Sherman, senior managing director of Blackstone Infrastructure.
Blackstone Infrastructure, an active perpetual capital investor, focuses on utility, energy transition, transportation, digital infrastructure, water, and waste sectors.
Shares of NiSource edged 0.6% higher on the New York Stock Exchange Tuesday morning.