Gryphon Investors Finalizes Sale of Shermco to Blackstone for $1.6 Billion

Gryphon Investors Sells Shermco to Blackstone

Gryphon Investors, a prominent private investment firm focused on middle-market companies, has made headlines with its latest announcement regarding the sale of Shermco, a recognized name in the electrical testing industry. This definitive agreement sees Shermco being acquired by Blackstone, a global leader in private equity, for a staggering $1.6 billion. This transaction marks a significant milestone for both companies, highlighting Gryphon’s strategic investment capabilities and Blackstone's commitment to enhancing Shermco’s growth trajectory.

About Shermco

Founded in 1974 and headquartered in Irving, Texas, Shermco provides an array of essential services related to electrical systems. It is one of the largest organizations accredited by the InterNational Electrical Testing Association (NETA). With over 600 NETA-certified technicians and 200 engineers operating from 40 service centers across the United States and Canada, Shermco caters to a diverse clientele including data centers and utility companies. Their services ensure the reliability and safety of critical electrical infrastructure, providing solutions for maintenance, repair, and engineering design.

Gryphon's Investment Journey

Gryphon Investors initially acquired Shermco in June 2018, under the leadership of CEO Phil Petrocelli. During Gryphon's stewardship, Shermco experienced impressive organic growth, achieving doubled revenue figures, and enhancing its operational margins. The partnership between Gryphon and Shermco’s management was key in bolstering the company's market position through strategic add-on acquisitions and an expanded service portfolio.

Alex Earls, a partner at Gryphon, expressed pride in the results achieved during their ownership, emphasizing the growth and operational enhancements made under Gryphon's guidance. He remarked, "We are 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."

Looking Ahead with Blackstone

Phil Petrocelli, the CEO of Shermco, conveyed optimism regarding the future collaboration with Blackstone. He noted that the foundation laid by Gryphon has positioned Shermco as a trusted partner within sectors that demand high reliability and safety standards. The partnership with Blackstone is expected to open new avenues for organic growth and further strategic acquisitions, leveraging Blackstone's vast resources and expertise in the sector.

Conclusion

The sale of Shermco to Blackstone signifies both an end and a new beginning. As Gryphon Investors moves forward with the promise of continued value creation through its other portfolio companies, Shermco prepares to enter a new phase under Blackstone’s stewardship. This strategic decision not only symbolizes Gryphon's successful exit but also demonstrates the transformative potential that comes with aligning strong operational foundations with powerful investment partners. The electrical testing landscape is poised for innovation as Shermco embarks on this exciting chapter of its journey, addressing the ever-growing demands of the electrical infrastructure market.

For more information on Shermco and its services, visit Shermco's Website.