Irving-based Shermco, a leading provider of electrical testing, engineering, maintenance, and repair, is being sold to private equity funds affiliated with New York-based Blackstone (NYSE: BX) in a deal valued at roughly $1.6 billion.
Shermco is a portfolio company of San Francisco-based Gryphon Investors, a leading middle-market private investment firm, which made the announcement. With more than 40 locations across North America, Shermco serves a diversified blue-chip client base.
Gryphon made its initial investment in Shermco in June 2018, partnering with CEO Phil Petrocelli and other members of Shermco management to achieve “strong organic growth and operating margin improvement” at the company, while also building through add-on acquisitions.
“We’re proud of the exceptional business building and financial performance achieved by Shermco management, including two-fold revenue growth under Gryphon’s ownership,” Alex Earls, partner and co-head of the Business Services Group at Gryphon, said in a statement. “We’re pleased that Blackstone recognized the strength of Shermco’s platform and believe the firm will be an excellent partner for Shermco management in its next phase of growth.”
Shermco’s Petrocelli said that with Gryphon’s support and operational expertise, his company “has become a highly valued partner for its blue-chip customer base. We look forward to pursuing organic initiatives and making additional add-on acquisitions in partnership with Blackstone.”
Shermco was founded in 1974
Founded in 1974, Shermco is one of the largest electrical testing organizations accredited by the InterNational Electrical Testing Association (NETA), providing comprehensive electrical system maintenance, repair, testing, commissioning, and engineering & 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 other 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, the company said.
Harris Williams served as lead financial advisor to Shermco, while Kirkland & Ellis acted as legal advisor to Gryphon.
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