Blackstone Acquires Shermco for $1.6 Billion in Electrical Equipment Services Deal

Blackstone has agreed to acquire Shermco, a leading provider of electrical equipment services, for approximately $1.6 billion. Shermco provides maintenance, repair, testing, commissioning, and design services across the US and Canada, with over 600 NETA technicians and 200 engineers. The acquisition is expected to expand Shermco's ability to serve customers nationwide as a trusted provider of essential electrical services.

Blackstone has agreed to acquire Shermco, a leading provider of electrical equipment services, for approximately $1.6 billion. Shermco offers a wide range of services, including maintenance, repair, testing, commissioning, and design services across the United States and Canada. With over 600 NETA technicians and 200 engineers, Shermco is a significant player in the electrical services industry [1].

The acquisition is expected to enhance Shermco's ability to serve customers nationwide as a trusted provider of essential electrical services. Gryphon Investors, the current owner of Shermco, has been instrumental in Shermco's growth since its initial investment in June 2018. Under Gryphon's ownership, Shermco achieved two-fold revenue growth and significant improvements in operating margins. The company's expertise and strategic partnerships have positioned it as a reliable partner for blue-chip customers [1].

Blackstone, a prominent private equity firm, is known for its extensive experience in the acquisition and growth of middle-market companies. The acquisition of Shermco aligns with Blackstone's strategy to invest in companies with strong operational platforms and growth potential. Alex Earls, a partner at Gryphon, expressed satisfaction with Shermco's performance and confidence in Blackstone's ability to support its continued growth [1].

Shermco's extensive service network includes over 40 locations across North America, making it well-positioned to expand its customer base and enhance its market reach. The company is accredited by the InterNational Electrical Testing Association (NETA) and is active in various industry associations, such as EASA and ACP. These accreditations and affiliations underscore Shermco's commitment to quality and industry standards [1].

The acquisition is expected to bring additional opportunities for Shermco, including organic growth initiatives and add-on acquisitions. Phil Petrocelli, CEO of Shermco, expressed his enthusiasm for the partnership with Blackstone, emphasizing the firm's support and operational expertise in driving Shermco's success [1].

The transaction is subject to customary closing conditions, including regulatory approvals and financing arrangements. The closing date has not been specified, but the deal is expected to close in the near future.

References:
[1] https://www.marketscreener.com/news/gryphon-investors-to-sell-shermco-to-blackstone-in-1-6-billion-transaction-ce7c51d3d180f423