Blackstone Acquires Shermco

The Texas-based EASA member joins a prestigious private equity firm

Prestigious private equity firm Blackstone announced August 21 that private equity funds affiliated with the company have entered into a definitive agreement to acquire Shermco, the Texas provider of full life-cycle electrical equipment services, from Gryphon Investors, a leading middle-market private investment firm. The transaction values the business at approximately $1.6 billion.

Founded in 1974, EASA member Shermco is also one of the largest electrical testing organizations accredited by the InterNational Electrical Testing Association (“NETA”), providing comprehensive electrical system maintenance, repair, testing, commissioning and design services, with more than 600 NETA technicians and 200 engineers across 40 service centers in the U.S. and Canada.

Shermco provides critical services for data centers, utilities and diversified commercial and industrial end-markets, partnering with customers to enhance the safety, reliability and efficiency of their critical electrical infrastructure, while minimizing downtime and outages.

JP Munfa and Michael Staub, Senior Managing Directors at Blackstone, said: “Shermco’s maintenance, testing, and commissioning services are vital to maintaining the reliability and safety of mission-critical electrical infrastructure. We are excited to partner with Phil Petrocelli and his exceptional leadership team to build on Shermco’s strong momentum and expand its ability to serve customers nationwide as a trusted provider of essential electrical services.”

David Foley, Global Head of Blackstone Energy Transition Partners, added: “As a leading energy investor focused on investment opportunities related to increasing electrification and the energy transition, we proactively seek out companies with strong, entrepreneurial management and work with them to fully capitalize on growth opportunities, building scale and competitive advantage. Shermco is well positioned to benefit from continued growth in the installed base of technically complex electrical equipment both on the grid and behind the meter and is the twelfth investment commitment from our most recent energy transition fund since the initiation of its investment period in June last year.”

Phil Petrocelli, CEO of Shermco, said: “Partnering with Blackstone marks an exciting next step in our growth trajectory. Together with its scale, resources and deep expertise across the energy industry, we’re excited to continue serving our customers’ critical power-system needs and expand our footprint and capabilities for our talented technicians and engineers – all while maintaining Shermco’s unwavering commitment to safety, service and excellence.”

Shermco represents the latest in a number of recent transactions Blackstone Energy Transition Partners has announced behind its high-conviction investment themes in electrification and the ongoing energy transition, including Enverus, Lancium, Power Grid Components, Potomac Energy Center, Sediver, Trystar, Westwood, and others. Blackstone Energy Transition Partners and Blackstone’s private equity strategy for individual investors are each expected to invest in Shermco as part of this transaction.

Blackstone Energy Transition Partners is Blackstone’s energy-focused private equity business, a leading energy investor with a successful long-term record, having committed over $27 billion of equity globally across a broad range of sectors within the energy industry.