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Private equity titan Blackstone has struck another high-voltage deal. On Thursday, the firm announced plans to acquire Shermco, a powerhouse in electrical equipment services, from Gryphon Investors in a transaction valued at $1.6 billion.

Advised by Vinson & Elkins LLP, Blackstone’s Energy Transition Partners and its private equity strategy for individual investors will both channel investment into the Irving, Texas-based Shermco. Gryphon and Shermco were counseled by Kirkland & Ellis LLP.

Shermco: From Service Centers to Industry Leader

Founded in 1974, Shermco has grown into a dominant force in electrical maintenance, repair, testing, and commissioning. With 600+ InterNational Electrical Testing Association (NETA) technicians and 200 engineers spread across 40 service centers in the U.S. and Canada, the company plays a critical role in powering essential infrastructure.

Shermco CEO Phil Petrocelli called the Blackstone partnership a pivotal leap: “Together with its scale, resources, and deep expertise across the energy industry, we’re excited to expand our capabilities for our customers and our team—all while maintaining our unwavering commitment to safety, service, and excellence.”

The Energy Transition Advantage

Shermco is recognized as one of the largest NETA-accredited testing organizations, servicing clients across data centers, utilities, and diverse industrial markets. Its services aim to boost electrical reliability while slashing downtime—a mission that aligns tightly with the global shift toward electrification.

David Foley, global head of Blackstone Energy Transition Partners, underscored the strategic fit: “Shermco is well positioned to benefit from the growth of technically complex electrical equipment, both on the grid and behind the meter. We actively seek entrepreneurial management teams who can scale with us in this electrification boom.”

Blackstone’s Expanding Energy Empire

This acquisition adds to Blackstone Energy Partners’ growing portfolio, which includes investments in Enverus, Lancium, Power Grid Components, and Potomac Energy Center. The firm has doubled down on companies fueling the energy transition, reinforcing its role as a dominant player in powering tomorrow’s grid.

Legal Firepower Behind the Deal

Blackstone’s legal team was led by Robert Hughes of Vinson & Elkins, supported by a battalion of partners spanning tax, corporate, labor, finance, environmental, real estate, antitrust, and litigation expertise. Meanwhile, Kirkland & Ellis LLP’s team for Shermco and Gryphon was spearheaded by Noah Boyens and Michael Hanna.