Gryphon Investors Completes $1.6 Billion Sale of Shermco to Blackstone

Gryphon Investors completed the sale of portfolio company Shermco to private equity funds affiliated with Blackstone (NYSE: BX) for approximately $1.6 billion on October 27, 2025.

Rhea-AI Summary

Gryphon Investors completed the sale of portfolio company Shermco to private equity funds affiliated with Blackstone (NYSE: BX) for approximately $1.6 billion on October 27, 2025. Gryphon acquired Shermco in 2018 and supported the business through organic revenue growth, operating margin improvements and more than a dozen add-on acquisitions.

Management cited two-fold revenue growth since Gryphon's initial investment; Harris Williams and Kirkland & Ellis served as financial and legal advisors, respectively.

Positive

• Transaction value of $1.6 billion
• Revenue two-fold growth since 2018
• Executed >bdozen add-on acquisitions
• Operational margin improvement initiatives implemented
• Sale to Blackstone provides liquidity for investors

Negative

• None.

Argus Oct 27 session

-0.49% close to close Open Argus

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News Market Reaction – BX

On Oct 27, the day this news came out, BX closed 0.49% below the previous close.

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SAN FRANCISCO, Oct. 27, 2025 /PRNewswire/ -- Gryphon Investors ("Gryphon"), a leading middle-market private investment firm, announced today that it has completed the sale of its portfolio company Shermco ("the Company"), a leader in electrical testing, engineering, maintenance and repair, to private equity funds affiliated with Blackstone (NYSE: BX). The transaction, valued at approximately $1.6 billion, was previously announced on August 21, 2025.

Founded in 1974 and headquartered in Irving, TX, Shermco provides critical electrical system maintenance, repair, testing, commissioning, and engineering & design 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. Since Gryphon's initial investment in 2018, Shermco has achieved strong growth through a focus on organic revenue expansion and operating margin improvement initiatives, while also expanding the business through more than a dozen add-on acquisitions.

Alex Earls, Partner and Co-Head of the Business Services Group at Gryphon, said, "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."

Harris Williams served as lead financial advisor to Shermco, and Kirkland & Ellis acted as legal advisor.

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:
Lambert by LLYC
Caroline Luz
203-570-6462
cluz@lambert.com
or
Jennifer Hurson
845-507-0571
jhurson@lambert.com 

 

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SOURCE Gryphon Investors

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Gryphon announce about Shermco on October 27, 2025?

Gryphon announced it completed the sale of Shermco to Blackstone-affiliated funds for ~$1.6 billion.

Which buyer acquired Shermco and what is the stock symbol?

Private equity funds affiliated with Blackstone (NYSE: BX) acquired Shermco.

How much did Shermco's revenue change under Gryphon's ownership?

Management reported two-fold revenue growth since Gryphon's initial 2018 investment.

What services does Shermco provide and which markets does it serve?

Shermco provides electrical testing, maintenance, repair, commissioning and engineering for data centers, utilities and industrial/commercial markets.

Who advised on the Shermco sale announced October 27, 2025?

Harris Williams acted as lead financial advisor and Kirkland & Ellis served as legal advisor.