Shermco Industries, a portfolio company of Gryphon Investors, has acquired Electrical Manufacturing and Distributors (EMD).
EMD is a provider of automated control systems design, systems integration, electrical engineering, custom programming, and fabrication of power distribution centers, electrical racks, and control panels. The company’s customers are active in the midstream oil and gas market. EMD was founded in 1984 and has more than 100 employees. The company, led by President Bruce Parker, is headquartered northwest of Dallas in Wichita Falls, TX with three additional offices Texas and Oklahoma (www.emdinc.com).
Gryphon acquired Shermco in June 2018 from Oaktree Capital Management. Shermco provides testing, maintenance, repair, commissioning, and repair services for electrical infrastructure including substations, switchgear, transformers, motors, and generators. Shermco services the entire electrical line – from high-voltage substations down to the distribution equipment within facilities.
Customers of the company are active in the commercial, industrial, municipal, and utility sectors. Shermco, founded in 1974 and led by CEO Bill Mohl, has approximately 500 employees with 27 locations and is headquartered near Dallas in Irving, TX (www.shermco.com).
“EMD’s process control expertise will be a complementary service line to Shermco’s current portfolio of services, which will allow us to better serve our customers as well as offer expanded services to EMD’s customer base,” said Mr. Mohl. “We anticipate continuing our acquisition strategy to expand our presence in new markets and broaden our service offerings.”
Gryphon makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $100 million to $300 million of capital in companies with EBITDA of up to $50 million. Sectors of interest include business services, consumer products and services, healthcare, industrial growth, and software. In July 2019 the firm held a final closing of Gryphon Partners V LP at its hard cap of $2.1 billion. The new fund was oversubscribed and exceeded its original target of $1.5 billion. Gryphon is based in San Francisco (www.gryphoninvestors.com).
© 2019 Private Equity Professional | August 29, 2019