Gryphon Investors, a leading middle-market private investment firm, announced the completion of the $1.6 billion sale of its portfolio company, Shermco, to funds affiliated with Blackstone. The deal, initially announced on August 21, 2025, marks one of the most notable middle-market private equity exits of the year.
Founded in 1974 and headquartered in Irving, Texas, Shermco has become a national leader in electrical testing, engineering, maintenance, and repair services, providing critical infrastructure support for data centers, utilities, and industrial clients. The company’s work focuses on enhancing the safety, reliability, and efficiency of customers’ electrical systems while minimizing downtime and outages — a vital component of modern data and energy infrastructure.
Since Gryphon Investors’ initial investment in 2018, Shermco has achieved substantial growth, driven by organic expansion and a disciplined acquisition strategy. Under Gryphon’s ownership, Shermco completed more than a dozen add-on acquisitions, doubling its revenue and broadening its service offerings across key commercial and industrial markets.
The sale to Blackstone marks a significant milestone for Shermco, positioning the company to accelerate its growth trajectory under the backing of one of the world’s largest alternative investment firms. The partnership is expected to support continued scale, technological innovation, and service diversification in an increasingly electrified and data-driven economy.
Support: Harris Williams served as lead financial advisor to Shermco, and Kirkland & Ellis acted as legal advisor.
KEY QUOTE:
“We are proud to have worked with CEO Phil Petrocelli and the management team to support exceptional business expansion and financial performance at Shermco, including two-fold revenue growth. We are confident the Company will continue to thrive under its new partners at Blackstone.”
Alex Earls, Partner and Co-Head of the Business Services Group, Gryphon Investors
