Gryphon Investors has agreed to sell Shermco Industries, a provider of critical power system services, to Blackstone in a transaction valued at approximately $1.6 billion. Gryphon acquired Shermco in June 2018 from Oaktree Capital Management.
Shermco Industries provides electrical testing, maintenance, commissioning, engineering, and repair services for a range of commercial, industrial, utility, and energy customers. Shermco services the entire electrical line – from high-voltage substations down to the distribution equipment within facilities.
Source: Shermco
The company’s core services include electrical system testing, engineering and design, preventative maintenance, emergency repair, and commissioning services. Key customer segments include data centers, utilities, manufacturers, and energy infrastructure operators.
Irving, Texas-headquartered Shermco was founded in 1974 and is currently led by CEO Phil Petrocelli. The company operates out of more than 40 service centers across the United States and Canada and employs over 600 NETA-certified technicians and 200 engineers.
Source: Shermco
Shermco expanded both organically and through acquisitions during its ownership by Gryphon. The company acquired New Jersey-based Eastern High Voltage (June 2025); Alabama-based R3L Engineering (May 2025); North Carolina-based Power Products and Solutions (March 2025); Pennsylvania-based KTR Associates (October 2024); North Carolina-based Power Test (April 2024); Washington-based Innovative Electric (June 2021); Washington-based Sigma Six Solutions (June 2021); British Columbia-based NextGen Technologies (September 2019); Texas-based Electrical Manufacturing and Distributors (August 2019); and Arizona-based Southwest Energy Systems (August 2019).
“With Gryphon’s support and operational expertise, Shermco has become a highly valued partner for its blue-chip customer base,” said Mr. Petrocelli. “We look forward to pursuing organic initiatives and making additional add-on acquisitions in partnership with Blackstone.”
Shermco operates in the electrical testing and maintenance services industry, which is projected to grow amid rising infrastructure upgrades, industrial safety requirements, and data center construction. According to Research Nester, the global electrical testing services market is expected to expand at a compound annual growth rate of 7% through 2035, supported by increased investment in grid modernization and power reliability initiatives across developed markets.
“We are proud of the exceptional business building and financial performance achieved by Shermco management, including two-fold revenue growth under Gryphon’s ownership,” said Alex Earls, a partner and co-head of the business services group at Gryphon. “We are pleased that Blackstone recognized the strength of Shermco’s platform and believe the firm will be an excellent partner for Shermco management in its next phase of growth.”
Gryphon Investors is based in San Francisco and makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $50 million to $500 million of capital in companies with enterprise values ranging from $100 million to $600 million and EBITDA of up to $80 million. Sectors of interest include business services, consumer products and services, healthcare, industrial growth, and software.
Blackstone is one of the world’s largest alternative investment firms, with a diversified portfolio across private equity, real estate, credit, and infrastructure. It is headquartered in New York City.
Harris Williams served as the financial advisor to Shermco on this transaction.
Gryphon Investors has agreed to sell Shermco Industries, a provider of critical power system services, to Blackstone in a transaction valued at approximately $1.6 billion. Gryphon acquired Shermco in June 2018 from Oaktree Capital Management.
“With Gryphon’s support and operational expertise, Shermco has become a highly valued partner for its blue-chip customer base,” said Mr. Petrocelli. “We look forward to pursuing organic initiatives and making additional add-on acquisitions in partnership with Blackstone.”
“We are proud of the exceptional business building and financial performance achieved by Shermco management, including two-fold revenue growth under Gryphon’s ownership,” said Alex Earls, a partner and co-head of the business services group at Gryphon. “We are pleased that Blackstone recognized the strength of Shermco’s platform and believe the firm will be an excellent partner for Shermco management in its next phase of growth.”
