Blackstone will acquire Shermco, one of North America’s largest electrical equipment services providers, from Gryphon Investors at a $1.6 billion valuation.
The deal supports Blackstone Energy Transition Partners’ strategy to scale companies advancing electrification and grid reliability.
Shermco brings more than 600 NETA technicians and 200 engineers, positioning it to meet rising demand from data centers, utilities, and industrial markets.
Blackstone has signed a definitive agreement to acquire Shermco, a provider of full life-cycle electrical equipment services, from Gryphon Investors in a deal valued at approximately $1.6 billion.
Founded in 1974, Shermco is among the largest electrical testing organizations accredited by the InterNational Electrical Testing Association (NETA). It operates 40 service centers across the U.S. and Canada, supporting data centers, utilities, and commercial and industrial customers with maintenance, testing, repair, commissioning, and design services.
JP Munfa and Michael Staub, Senior Managing Directors at Blackstone, said: “Shermco’s maintenance, testing, and commissioning services are vital to maintaining the reliability and safety of mission-critical electrical infrastructure. We are excited to partner with Phil Petrocelli 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.”
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David Foley, Global Head of Blackstone Energy Transition Partners, emphasized the deal’s alignment with Blackstone’s strategy: “As a leading energy investor focused on investment opportunities related to increasing electrification and the energy transition, we proactively seek out companies with strong, entrepreneurial management and work with them to fully capitalize on growth opportunities, building scale and competitive advantage. Shermco is well positioned to benefit from continued growth in the installed base of technically complex electrical equipment both on the grid and behind the meter.”
Shermco CEO Phil Petrocelli said the agreement sets the company up for its next stage of growth: “Partnering with Blackstone marks an exciting next step in our growth trajectory. Together with its scale, resources and deep expertise across the energy industry, we’re excited to continue serving our customers’ critical power-system needs and expand our footprint and capabilities for our talented technicians and engineers – all while maintaining Shermco’s unwavering commitment to safety, service and excellence.”
This acquisition marks the twelfth investment commitment by Blackstone Energy Transition Partners since June 2024, adding to a portfolio that includes Enverus, Lancium, Power Grid Components, Potomac Energy Center, Sediver, Trystar, Westwood, and others.
Stifel and JPMorgan acted as financial advisors and Vinson & Elkins served as legal advisor to Blackstone. Gryphon Investors and Shermco were advised by Harris Williams and Kirkland & Ellis.
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