NEW YORK: Blackstone (NYSE: BX) announced Thursday that private equity funds affiliated with the firm have entered into a definitive agreement to acquire Shermco, a leading provider of full life-cycle electrical equipment services, from Gryphon Investors. The transaction values Shermco at approximately $1.6 billion.
Founded in 1974, Shermco is one of the largest electrical testing organizations accredited by the InterNational Electrical Testing Association (NETA), with more than 600 NETA technicians and 200 engineers operating across 40 service centers in the U.S. and Canada. The company provides critical services for data centers, utilities, and industrial clients, helping ensure the safety and reliability of complex electrical infrastructure.
“Shermco’s maintenance, testing, and commissioning services are vital to mission-critical systems,” said JP Munfa and Michael Staub, Senior Managing Directors at Blackstone. “We’re excited to partner with CEO Phil Petrocelli and his team to expand Shermco’s national footprint.”
David Foley, Global Head of Blackstone Energy Transition Partners, emphasized Shermco’s alignment with Blackstone’s investment themes in electrification and energy transition. “Shermco is well positioned to benefit from growth in technically complex electrical equipment both on the grid and behind the meter,” Foley said.
Shermco marks the twelfth investment from Blackstone’s latest energy transition fund since June last year, joining a portfolio that includes Enverus, Lancium, and Power Grid Components.
Stifel and Vinson & Elkins advised Blackstone on the transaction. Harris Williams and Kirkland & Ellis advised Gryphon Investors and Shermco.