Gryphon Investors Completes $1.6 Billion Sale of Shermco
Gryphon Investors Sells Shermco to Blackstone
Gryphon Investors, a prominent player in middle-market private equity, has announced the completion of a significant transaction. The firm has sold its portfolio company, Shermco, a leader in the electrical testing, engineering, maintenance, and repair industry, to private equity funds affiliated with Blackstone. This deal is valued at approximately $1.6 billion, marking a major milestone for both Gryphon and Shermco.
Overview of Shermco
Founded in 1974, Shermco has established itself as one of the largest organizations for electrical testing in North America. The company’s headquarters are in Irving, TX, and it operates with a robust workforce, including over 600 accredited technicians and 200 engineers stationed across 40 service centers in the U.S. and Canada. Shermco offers essential services to a variety of sectors, such as data centers and utilities, ensuring the safety and efficiency of crucial electrical infrastructures.
Services Provided by Shermco
Shermco’s suite of services includes comprehensive electrical system maintenance, repair, testing, commissioning, along with engineering and design solutions. Their focus on minimizing downtime and enhancing reliability reflects the firm's commitment to maintaining operational effectiveness for its diverse customer base.
Gryphon’s Journey with Shermco
Gryphon Investors initially invested in Shermco in 2018. Under Gryphon's stewardship, the company experienced remarkable growth. With a strategic approach, Gryphon worked closely with Shermco's management team, including CEO Phil Petrocelli, to enhance operational efficiency and boost revenue significantly.
Strategic Significance of the Sale
According to Alex Earls, Partner at Gryphon, the firm is proud of the accomplishments achieved during its partnership with Shermco. The business saw a twofold increase in revenue during Gryphon’s ownership, which illustrates the successful operational enhancements and growth strategies implemented over the years.
The Future of Shermco
Post-acquisition, Phil Petrocelli expressed optimism about the future, stating, "With the expertise and support from Gryphon, Shermco has positioned itself as a vital partner for many esteemed clients. We are eager to explore new organic growth opportunities and additional acquisitions with Blackstone as our partner." This forward-looking sentiment underscores Shermco's readiness to continue expanding its market presence.
About Gryphon Investors
Gryphon Investors is well-regarded in the investment sphere, focusing on growth-oriented middle-market companies across various sectors. With more than $10 billion in assets under management, Gryphon emphasizes forming strong partnerships with business leaders and driving sustainable value through a rigorous operational framework. Their approach includes diverse investment strategies, including flagship and heritage funds targeting significant equity investments, and a junior capital strategy aimed at credit securities.
About Shermco
Shermco’s dedication to excellence in electrical services is evident through its consistent participation in key industry associations. With its broad and diversified client base across North America, Shermco not only meets but exceeds industry standards in safety and performance. The company continues to innovate and adapt to the dynamic needs of its clients.
Frequently Asked Questions
What is the value of the transaction between Gryphon and Blackstone?
The transaction is valued at approximately $1.6 billion.
When was Shermco founded?
Shermco was founded in 1974 and has since grown to be a leader in electrical testing services.
Who is the current CEO of Shermco?
The current CEO of Shermco is Phil Petrocelli.
What types of services does Shermco provide?
Shermco provides electrical testing, maintenance, commissioning, and repair services across various industries.
What is the role of Gryphon Investors?
Gryphon Investors is a leading middle-market private equity firm that focuses on investing in and growing companies across several sectors.
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