Gryphon Investors has sold its portfolio company, Shermco, a leading provider of electrical services, to Blackstone for approximately $1.6 billion, marking a significant strategic move within the growing electrical services sector.

Target Information

Gryphon Investors, a prominent middle-market private investment firm, has successfully completed the sale of its portfolio company, Shermco. Founded in 1974 and headquartered in Irving, TX, Shermco stands out as a leader in providing essential electrical testing, engineering, maintenance, and repair services. The Company predominantly serves critical sectors such as data centers, utilities, and various diversified commercial and industrial markets, ensuring enhanced safety, reliability, and efficiency of electrical infrastructures while minimizing downtime.

Since Gryphon's investment in 2018, Shermco has realized significant growth by concentrating on organic revenue progression and improving operating margins. This growth trajectory has been complemented by over a dozen acquisitions, reinforcing its market position. Alex Earls, Partner and Co-Head of the Business Services Group at Gryphon, praised the remarkable performance, noting a doubling of revenue under the leadership of CEO Phil Petrocelli and the management team.

Industry Overview

Over the last few years, the electrical testing and maintenance industry in the United States has witnessed robust growth driven by increasing demand for reliable electrical services across various sectors. This trend has been fueled by the expans