Blackstone to buy electrical equipment services firm Shermco for $1.6B

Private equity funds tied to Blackstone (NYSE:BX) have agreed to acquire Shermco, a provider of full life-cycle electrical equipment services, from middle-market private investment firm Gryphon for about $1.6B, Blackstone said on Thursday.

Shermco, founded in 1974, offers electrical system maintenance, repair, testing, commissioning and design services, with over 600 NETA technicians and 200 engineers across 40 service centers in the U.S. and Canada. It provides critical services for data centers, utilities and diversified commercial and industrial end-markets.

Blackstone Energy Transition Partners and Blackstone’s (NYSE:BX) private equity strategy for individual investors are each expected to invest in Shermco as part of this transaction. Timing of the agreement was not disclosed.

"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 and is the twelfth investment commitment from our most recent energy transition fund since the initiation of its investment period in June last year," said David Foley, global head of Blackstone Energy Transition Partners.