Blackstone acquires Shermco for $1.6bn

November 2025 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

November 2025 Issue

Alternative asset manager Blackstone has announced a definitive agreement to acquire Shermco Industries, a leading provider of electrical equipment services, from Gryphon Investors in a transaction valued at approximately $1.6bn. The acquisition underscores Blackstone’s continued strategic focus on energy transition and electrification, as global demand for resilient and sustainable infrastructure continues to rise.

Founded in 1974 and headquartered in Irving, Texas, Shermco is one of North America’s largest electrical testing organisations accredited by the InterNational Electrical Testing Association (NETA). The company provides comprehensive electrical system maintenance, repair, testing, commissioning and design services. It operates more than 40 service centres across the US and Canada, employing over 800 professionals, including more than 600 NETA-certified technicians and 200 engineers.

Gryphon Investors initially acquired a majority stake in Shermco from Oaktree Capital Management in June 2018. Under Gryphon’s ownership, Shermco achieved significant organic growth, improved operating margins and expanded through strategic add-on acquisitions. Gryphon reported that Shermco’s revenue more than doubled during its investment period, driven by increased demand for high quality electrical services across industrial and commercial sectors.

The acquisition by Blackstone follows the final close of its energy transition focused private equity fund, Blackstone Energy Transition Partners IV (BETP IV), which reached its hard cap of $5.6bn earlier this year. This fund is approximately 33 percent larger than its predecessor and has made 12 investments since its launch in June 2024, reflecting strong investor confidence in Blackstone’s energy strategy.

Shermco joins a growing portfolio of companies aligned with Blackstone’s high-conviction themes in electrification and grid reliability. Other recent investments include Enverus, acquired for over $6bn, as well as Potomac Energy Centre, Sediver, Westwood Professional Services, Trystar, Lancium and Power Grid Components. These investments support Blackstone’s broader goal of accelerating the transition to cleaner, more efficient energy systems.

“Shermco’s maintenance, testing and commissioning services are vital to maintaining the reliability and safety of mission-critical electrical infrastructure,” said JP Munfa and Michael Staub, senior managing directors at Blackstone. “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.”

David Foley, global head of Blackstone Energy Transition Partners, added: “As a leading energy investor focused on opportunities related to increasing electrification and the energy transition, we proactively seek out companies with strong, entrepreneurial management and work with them to fully capitalise on growth opportunities. Shermco is well positioned to benefit from continued expansion in the installed base of technically complex electrical equipment both on the grid and behind the meter.”

Phil Petrocelli, chief executive of Shermco, commented: “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 are 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.”

The transaction is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals. Financial advisers for Blackstone included Stifel and JPMorgan, while Vinson & Elkins served as legal counsel. Gryphon was advised by Harris Williams and Kirkland & Ellis.

Blackstone Energy Transition Partners is Blackstone’s energy focused private equity business. It has committed over $27bn of equity globally across a broad range of energy sectors and aims to invest up to $100bn in energy transition and climate-related projects over the next decade.

Gryphon Investors, with more than $10bn in assets under management, focuses on growing competitively advantaged companies in business services, consumer, healthcare, industrial growth, software and technology solutions sectors.

Richard Summerfield