Shermco Expands with R3L Acquisition in Alabama
Deal News | May 20, 2025 | Gryphon Investors
Shermco Industries has acquired R3L Engineering to bolster its presence in Southeastern U.S., particularly around Birmingham, Alabama. This strategic acquisition broadens Shermco's technical resource pool and expands its capability to deliver electrical engineering services across Alabama and the greater Southeastern region. Known for providing comprehensive solutions in electrical testing and engineering, Shermco aims to leverage R3L’s specialized expertise in power delivery systems to enhance customer service in the industrial sector. R3L brings a seasoned team with a track record across various voltage systems. The deal marks an important milestone for Shermco, fostering its growth trajectory in industrial markets. Gryphon Investors, a San Francisco-based private equity firm, is the majority owner of Shermco, guiding it towards enhanced operational expansion in targeted sectors.
Sectors
- Electrical Engineering Services
- Private Equity
- Industrial Services
Geography
- United States – Shermco is headquartered in Texas, operates across North America, and is expanding in the Southeastern United States, particularly in Alabama.
- Southeastern United States – The acquisition of R3L Engineering enhances Shermco’s operations specifically in Alabama, a strategic region for the company's growth.
Industry
- Electrical Engineering Services – This sector covers the provision of engineering services related to electrical systems which are core to both Shermco and R3L's operations.
- Private Equity – Gryphon Investors is a private equity firm that is actively investing in companies like Shermco, showcasing the interconnectedness of financial backing and operational growth.
- Industrial Services – Shermco's expansion aims to boost its industrial client base, highlighting the industrial services sector's relevance.
Financials
- Not Disclosed – The financial terms of the Shermco acquisition of R3L were not disclosed in the article.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Shermco Industries | Acquirer | Company | A leader in electrical testing and engineering, enhancing its market presence through strategic acquisitions. |
| R3L Engineering | Target company | Company | Specializes in power delivery systems, bringing valuable expertise to Shermco post-acquisition. |
| Gryphon Investors | Private Equity Owner | Company | A major private equity firm that backs Shermco, providing strategic financial support for its growth. |
| Drew Johns | Contact at Shermco | Person | Vice President, Corporate Development at Shermco Industries. |
| Caroline Luz | Contact for Gryphon | Person | Representative at Lambert for Gryphon. |