#United States #Irving #Blackstone #Gryphon Investors #Shermco

Gryphon Investors Completes Sale of Shermco to Blackstone

In a landmark transaction, Gryphon Investors, a notable player in middle-market private investments, has finalized the sale of its portfolio company, Shermco, to private equity funds associated with Blackstone, in a deal valued at around $1.6 billion. This sale highlights Gryphon's strategic focus on generating significant asset liquidity while ensuring continued growth for Shermco.

Overview of the Deal

Announced on August 21, 2025, the sale officially closed on October 27, 2025. Shermco, established in 1974 and based in Irving, Texas, is a leader in the electrical services sector, offering vital solutions in electrical testing, maintenance, repair, and engineering design. It primarily serves data centers, utilities, and various industrial sectors, emphasizing reliability and efficiency in electrical infrastructure.

Over the years, Shermco has built a solid reputation, enhancing critical infrastructure for numerous clients while minimizing downtime. This strategic acquisition by Blackstone indicates confidence in Shermco’s growth potential and its capacity to continue delivering exceptional service to its esteemed clientele.

Shermco's Growth Under Gryphon's Guidance

Since Gryphon's investment in 2018, Shermco has achieved remarkable growth. Under the stewardship of CEO Phil Petrocelli, the company witnessed a two-fold increase in revenue and expanded through over a dozen acquisitions, strengthening its market position. Alex Earls, Partner and Co-Head of Gryphon's Business Services Group, expressed pride in the partnership with Shermco's management, acknowledging their collective efforts in driving business expansion and financial performance.

The Role of Advisors

In facilitating this transition, Harris Williams served as the lead financial advisor, providing essential insights and guidance throughout the sale process. Kirkland & Ellis acted as the legal advisor, ensuring all legal aspects of the sale were meticulously handled. Their expertise was pivotal in navigating the complexities of such a significant transaction.

About Gryphon Investors

Gryphon Investors manages over $10 billion in assets, focusing on growing and advancing companies within the Business Services, Healthcare, Consumer, and Technology sectors. Their integrated deal and operations model fosters strong partnerships with business leaders to cultivate long-term value and sustainable growth. Gryphon follows a three-pronged investment strategy comprising Flagship, Heritage, and Junior Capital strategies, allowing for diverse investment opportunities across various sectors.

Future Prospects for Shermco

As Shermco transitions to new ownership, industry experts anticipate it will continue on its upward trajectory, bolstered by Blackstone's resources and investment acumen. With a strong operational foundation and a commitment to innovative solutions, Shermco is well-positioned to enhance its service offerings and expand its reach in the electrical services market.

Conclusion

The sale of Shermco marks a significant milestone for Gryphon Investors and sets a strong precedent for future transactions within the private equity landscape. As both Gryphon and Shermco move forward, their focus on strategic growth and operational excellence will remain a priority, ultimately benefiting their stakeholders and clients alike.