Blackstone Energy Transition Partners, the energy-focused private equity arm of Blackstone, has agreed to acquire Shermco Industries from Gryphon Investors in a deal valuing the business at approximately $1.6bn, including debt.
Headquartered in Irving, Texas, Shermco is a leading provider of electrical testing, maintenance, and repair services across North America. The company employs over 800 professionals, including more than 600 technicians and 200 engineers, servicing sectors such as semiconductors, data centres, automotive, and food and beverage.
The acquisition marks the latest strategic move by Blackstone Energy Transition Partners as it continues to scale its portfolio around the accelerating electrification trend. The platform recently announced the acquisition of Enverus in a transaction valued north of $6bn, and has also invested in Potomac Energy Centre, Sediver, Westwood Professional Services, and Trystar.
Gryphon Investors acquired a majority stake in Shermco from Oaktree Capital Management in 2018. Financial terms of that earlier transaction were not disclosed.
The deal follows the recent close of Blackstone Energy Transition Partners IV at its $5.6bn hard cap, a 30% increase over its predecessor fund. Blackstone reports a net IRR of approximately 25% for Fund III.
