Blackstone announced that private equity funds affiliated with the firm have agreed to acquire Shermco, a leading provider of full life-cycle electrical equipment services, from Gryphon Investors. The transaction values the business at approximately $1.6 billion. 

Founded in 1974, Shermco delivers maintenance, repair, testing, commissioning, and design services for data centers, utilities, and diversified commercial and industrial markets. The company has built a strong reputation as a mission-critical partner in ensuring the reliability and safety of electrical infrastructure nationwide. 

“Shermco’s maintenance, testing, and commissioning services are vital to maintaining the reliability and safety of mission-critical electrical infrastructure,” said JP Munfa and Michael Staub, senior managing directors at Blackstone. “We are excited to partner with Phil Petrocelli [Shermco CEO] and his exceptional leadership team to build on Shermco’s strong momentum and expand its ability to serve customers nationwide as a trusted provider of essential electrical services.” 

The investment in Shermco adds to a growing portfolio of Blackstone Energy Transition Partners transactions aligned with high-conviction themes in electrification and the energy transition. Other recent deals include Enverus, Lancium, Power Grid Components, Potomac Energy Center, Sediver, Trystar, and Westwood. 

In February, Blackstone announced the final close of its latest energy-transition-focused private equity vehicle, Blackstone Energy Transition Partners IV (BETP IV), at its hard cap of $5.6 billion. The fundraise represents a 33% increase over its predecessor 

Advisors on the deal included Stifel as financial advisor and Vinson & Elkins as legal advisor to Blackstone. Harris Williams served as financial advisor, while Kirkland & Ellis acted as legal advisor to Gryphon Investors and Shermco.