Blackstone, an alternative asset manager, has reached an agreement to acquire Shermco, a provider of comprehensive electrical equipment services, from Gryphon Investors. This acquisition aligns with Blackstone’s continued focus on energy transition and electrification opportunities, valuing Shermco at approximately $1.6 billion.
Founded in 1974, Shermco is based in Texas and is one of the largest electrical testing organisations accredited by the InterNational Electrical Testing Association. The company provides maintenance, testing, commissioning, design, and repair services for electrical systems across the US and Canada. Shermco supports customers in data centres, utilities, and a range of commercial and industrial markets, aiming to enhance the safety, reliability, and efficiency of electrical infrastructure while minimising downtime and outages.
David Foley, Global Head of Blackstone Energy Transition Partners, stated: “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 capitalise 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.”
This transaction is the latest in a series of energy transition-focused deals for Blackstone, following recent acquisitions of Enverus, Westwood, and Trystar. Earlier this year, Blackstone announced it had raised $5.6 billion for its energy transition-focused private equity fund, Blackstone Energy Transition Partners IV, closing the fund at its hard cap.
Both Blackstone Energy Transition Partners and Blackstone’s private equity strategy for individual investors are expected to participate in the Shermco investment.
Phil Petrocelli, CEO of Shermco, commented: “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.”
