Hitachi Energy has acquired a minority stake in Shermco, strengthening its Service business to enhance the reliability of North America's power grid while investing over $1 billion in global service expansion.

Target Information

Hitachi Energy has strategically acquired a minority stake in Shermco, a premier provider of maintenance, repair, testing, commissioning, and design services across North America. This acquisition comes on the heels of Shermco's purchase by private equity funds managed by Blackstone, highlighting the growing significance of maintaining reliable power infrastructure in the region. Shermco is headquartered in Irving, Texas, and boasts a workforce of over 600 NETA-certified technicians and 200 engineers, underlining its capacity to deliver high-quality electrical services to its extensive client base.

The partnership with Hitachi Energy not only enhances Shermco's service capabilities but also strengthens its commitment to serving essential power needs, ensuring safety and excellence in the industry. With a history in the electrical testing sector dating back to 1974, Shermco's extensive experience and established reputation poise it to capitalize on the growing demand for electrical services in today's rapidly evolving energy landscape.

Industry Overview

The electricity industry in North America is undergoing transformational changes, driven by aging infrastructure, increasing electrification, and evolving regulatory landscapes. Many transmission lines in the United States are now over thirty years old, reaching the end of their in