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Gryphon Investors to Sell Shermco to Blackstone in $1.6 Billion Transaction

1. Blackstone acquired Shermco from Gryphon for $1.6 billion. 2. Shermco is a leading electrical testing and engineering firm. 3. Shermco achieved two-fold revenue growth under Gryphon's ownership. 4. Blackstone aims to enhance Shermco's growth through its operational expertise. 5. Shermco services critical infrastructure for utilities and industrial markets.

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FAQ

Why Bullish?

The acquisition reflects Blackstone's strategic focus on growing quality assets, enhancing BX’s portfolio and growth potential. Historical acquisitions have often contributed positively to BX's stock performance post-deal.

How important is it?

The transaction enhances BX's investment assets and positions them for future growth in the electrical services niche, which is increasingly vital in infrastructure development.

Why Long Term?

With Blackstone's backing, Shermco is poised for organic growth and expansions through acquisitions, indicating sustained performance improvements over the coming years.

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, /PRNewswire/ -- Gryphon Investors ("Gryphon"), a leading middle-market private investment firm, announced today that it has entered into a definitive agreement to sell its portfolio company Shermco ("the Company"), a leading player in electrical testing, engineering, maintenance and repair, to private equity funds affiliated with Blackstone (NYSE: BX). The transaction is valued at approximately $1.6 billion. Founded in 1974 and headquartered in Irving, TX, Shermco is one of the largest electrical testing organizations accredited by the InterNational Electrical Testing Association ("NETA"), providing comprehensive electrical system maintenance, repair, testing, commissioning, and engineering & design services, with more than 600 NETA technicians and 200 engineers across 40 service centers in the U.S. and Canada. Shermco provides critical services for data centers, utilities and other diversified commercial and industrial end-markets, partnering with customers to enhance the safety, reliability and efficiency of their critical electrical infrastructure, while minimizing downtime and outages. Gryphon, which made its initial investment in Shermco in June 2018, partnered with CEO Phil Petrocelli and other members of Shermco management to achieve strong organic growth and operating margin improvement at Shermco, while also building through add-on acquisitions. Alex Earls, Partner and Co-Head of the Business Services Group at Gryphon, said, "We are proud of the exceptional business building and financial performance achieved by Shermco management, including two-fold revenue growth under Gryphon's ownership. We are pleased that Blackstone recognized the strength of Shermco's platform and believe the firm will be an excellent partner for Shermco management in its next phase of growth." Mr. Petrocelli commented, "With Gryphon's support and operational expertise, Shermco has become a highly valued partner for its blue-chip customer base. We look forward to pursuing organic initiatives and making additional add-on acquisitions in partnership with Blackstone." Harris Williams served as lead financial advisor to Shermco and Kirkland & Ellis acted as legal advisor to Gryphon. About Gryphon Investors Gryphon Investors is a leading middle-market private investment firm focused on profitably growing, competitively advantaged companies in the Business Services, Consumer, Healthcare, Industrial Growth, Software, and Technology Solutions & Services sectors. With more than $10 billion of assets under management, Gryphon prioritizes investments in which it can form strong partnerships with founders, owners, and executives to accelerate the building of leading companies and generate enduring value through its integrated deal and operations business model. Gryphon's highly differentiated model integrates its well-proven Operations Resources Group, which is led by full-time, Gryphon senior operating executives with general management, human capital acquisition and development, treasury, finance, and accounting expertise. Gryphon's three core investment strategies include its Flagship, Heritage, and Junior Capital strategies, each with dedicated funds of capital. The Flagship and Heritage strategies target equity investments of $50 million to $500 million per portfolio company. The Junior Capital strategy targets investments of $10 million to $25 million in junior securities of credit facilities, arranged by leading middle-market lenders, in both Gryphon-controlled companies, as well as in other private equity-backed companies operating in Gryphon's targeted investment sectors. About Shermco Headquartered in Irving, TX, Shermco provides electrical testing, maintenance, commissioning and repair services to a wide range of utility, industrial, energy and other end markets. With more than 40 locations, Shermco serves a diversified blue-chip client base across North America. The Company is an active participant in NETA (the InterNational Electrical Testing Association), EASA (Electrical Apparatus Service Association), and ACP (American Clean Power Association). For more information, visit www.shermco.com. Contact:LambertCaroline Luz203-570-6462[email protected]orJennifer Hurson845-507-0571[email protected] SOURCE Gryphon Investors WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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