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SAN FRANCISCO - Private investment firm Gryphon Investors announced today it has reached a definitive agreement to sell Shermco, an electrical testing and maintenance services provider, to Blackstone (NYSE:BX), a $202 billion market cap investment giant, in a transaction valued at approximately $1.6 billion. According to InvestingPro data, Blackstone has demonstrated strong financial health with robust profitability metrics and consistent dividend payments for 19 consecutive years.
Irving, Texas-based Shermco provides electrical system maintenance, repair, testing, commissioning, and engineering services across 40 service centers in the U.S. and Canada. The company employs more than 600 technicians accredited by the InterNational Electrical Testing Association and 200 engineers.
Gryphon initially invested in Shermco in June 2018. During Gryphon’s ownership, Shermco achieved two-fold revenue growth while serving data centers, utilities and other commercial and industrial customers.
"We are proud of the exceptional business building and financial performance achieved by Shermco management," said Alex Earls, Partner and Co-Head of the Business Services Group at Gryphon, in a press release statement.
Shermco CEO Phil Petrocelli noted that the company plans to pursue organic initiatives and additional acquisitions in partnership with Blackstone.
Harris Williams served as lead financial advisor to Shermco, while Kirkland & Ellis acted as legal advisor to Gryphon for the transaction.
Gryphon Investors manages more than $10 billion in assets and focuses on investments in business services, consumer, healthcare, industrial growth, software, and technology sectors.
In other recent news, Blackstone Inc. has agreed to acquire the energy data platform Enverus in a deal valued at more than $6 billion. The acquisition, which could reach $6.5 billion with certain earnout provisions, marks a significant transaction in the energy data services sector. Additionally, Blackstone’s quarterly earnings exceeded expectations, surpassing both Keefe, Bruyette & Woods (KBW) and consensus estimates by $0.10 per share. This performance was driven by higher fee-related earnings and net realizations. Consequently, KBW raised its price target for Blackstone to $180 from $168, maintaining a Market Perform rating.
In another development, IntraFi, a financial technology company backed by Blackstone and Warburg Pincus, secured over $2 billion in leveraged loans. This funding, arranged by Morgan Stanley, will help IntraFi refinance high-risk debt and pay dividends to its private equity owners. Tragically, Blackstone announced that a senior executive, Wesley LePatner, was among those killed in a shooting at a Manhattan office building. The company expressed profound sorrow over the loss. These events reflect recent developments involving Blackstone and its associated ventures.
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