Blackstone’s energy-focused private equity business has acquired Power Grid Components (PGC) from Shorehill Capital.
Blackstone Energy Transition Partners has invested an unspecified amount to buy PGC, an American company that designs and manufactures critical components for electrical substations.
The company was founded in 2017 by CEO Rick McClure and Shorehill Capital to acquire and grow companies that manufacture, and supply products used in the North American electric power grid.
McClure and the other senior leaders will remain with the business in their current positions following the transaction.
“We believe Blackstone will be an outstanding strategic partner in helping us achieve long-term growth while continuing to supply essential components with outstanding quality, reliability and lead times to North America’s electrical utilities,” McClure said.
David Foley, the global head of Blackstone Energy Transition Partners, said: “As a leading investor in the energy transition, we proactively seek out companies with strong, entrepreneurial management and work to help them fully capitalise on the growth opportunities available to them.
“The acquisition of Power Grid Components fits squarely within one of our favorite investment themes – the US electrical grid, joining our other recent grid-related investments, including Champlain Hudson Power Express, equipment manufacturers such as Sabre and grid software companies such as Energy Exemplar.”
John-Paul Munfa, senior MD at Blackstone, said: “We’re thrilled to invest in PGC, which we believe is well-positioned to benefit from tremendous growth driven by long-term secular tailwinds associated with the need to replace aging electrical grid infrastructure, connect newly-built renewable power generation, increase capacity to meet growing electricity demand, and harden the grid to improve its reliability.”
As previously reported, Blackstone is seeking to raise $6bn for its Blackstone Energy Transition Partners IV, a global fund that will be investing in a diversified portfolio of infrastructure assets.
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