Blackstone (NYSE: BX) announced that private equity funds affiliated with Blackstone have closed the acquisition of Power Grid Components, Inc. (“PGC”) from Shorehill Capital LLC. PGC is a leading domestic designer and manufacturer of a wide range of critical components for protection, monitoring, and safety applications in electrical substations, an essential segment of the electrical grid responsible for managing and monitoring power flows and converting electricity into different voltages.

Blackstone (NYSE: BX) announced that private equity funds affiliated with Blackstone have closed the acquisition of Power Grid Components, Inc. (“PGC”) from Shorehill Capital LLC.

PGC is a leading domestic designer and manufacturer of a wide range of critical components for protection, monitoring, and safety applications in electrical substations, an essential segment of the electrical grid responsible for managing and monitoring power flows and converting electricity into different voltages. As a supplier of critical components to the grid and partner to many of the nation’s largest electrical utilities, PGC advances the global energy transition by improving the reliability, capacity, and safety of the grid, by enabling the deployment of new renewable generation, and by supporting broad electrification trends. PGC was founded in 2017 by CEO Rick McClure and Shorehill Capital LLC. Mr. McClure and the other senior leaders will remain with the business in their current positions following the transaction.

David Foley, 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 capitalize on the growth opportunities available to them. The acquisition of Power Grid Components fits squarely within one of our favorite investment themes – the U.S. 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 (JP) Munfa, Senior Managing Director at Blackstone, added: “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. We look forward to working with Rick and his team on this next chapter for PGC. PGC has built strong, long-term relationships with many of our nation’s leading electrical utilities and has positioned itself as an acquiror of choice within the electrical components sector.”

Rick McClure, CEO of Power Grid Components, Inc., said: “Our leadership team is thrilled to be partnering with Blackstone, a leader in energy transition investing. 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.”

About Blackstone

Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors. We do this by relying on extraordinary people and flexible capital to help strengthen the companies we invest in. Our over $1 trillion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, infrastructure, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

About Blackstone Energy Transition Partners

Blackstone Energy Transition Partners is Blackstone’s energy-focused private equity business, a leading energy investor with a successful long-term record, having invested over $21 billion of equity globally across a broad range of sectors within the energy industry. Our investment philosophy is based on backing exceptional management teams with flexible capital to provide solutions that help energy companies grow and improve performance, thereby delivering cleaner, more reliable and affordable energy to meet the needs of the global community. In the process, we build stronger, larger scale enterprises, create jobs and generate lasting value for our investors, employees and all stakeholders.

About Power Grid Components, Inc.

Power Grid Components, Inc. was formed by electric grid products industry veteran Rick McClure and Shorehill Capital LLC to acquire and grow companies that manufacture, and supply products used in the North American electric power grid. Currently, the company is a supplier of high voltage disconnect switchgear, high quality porcelain and glass insulators, as well as instrument transformers for revenue metering and protective relaying to electric utilities, original equipment manufacturers and other customers who support the grid.

Shorehill Capital LLC (“Shorehill”) announced today the sale of Power Grid Components, Inc. (“Power Grid” or the “Company”) to Blackstone Energy Transition Partners, a private equity fund affiliated with Blackstone (NYSE: BX) (“Blackstone”). Blackstone completed the acquisition on November 30, 2023 in partnership with Power Grid’s existing management team. Power Grid serves electric utilities, original equipment manufacturers and other customers with mission-critical products used on the U.S. electric utility grid. The Company provides a suite of products across three major product segments—air-break switches, insulators, and instrument transformers.

Shorehill Capital LLC (“Shorehill”) announced today the sale of Power Grid Components, Inc. (“Power Grid” or the “Company”) to Blackstone Energy Transition Partners, a private equity fund affiliated with Blackstone (NYSE: BX) (“Blackstone”). Blackstone completed the acquisition on November 30, 2023 in partnership with Power Grid’s existing management team.

Power Grid serves electric utilities, original equipment manufacturers and other customers with mission-critical products used on the U.S. electric utility grid. The Company provides a suite of products across three major product segments—air-break switches, insulators, and instrument transformers. Shorehill and electric grid industry veteran Rick McClure formed Power Grid in 2017 to acquire companies that manufacture, and supply products used in the North American electric power grid. Over the ensuing six years Shorehill and Power Grid built a scalable platform with a strong growth profile. Power Grid completed five complementary add-on acquisitions, successfully integrating the acquired companies into one cohesive business, creating a platform with a strong management team, world class operations, institutionalized processes, and a well-defined organic growth strategy.

Dave Hawkins said, “We are proud of the business we built in partnership with the Power Grid management team and are excited to watch the Company’s future development with its new partner. Working with Rick McClure, Power Grid’s President and CEO, Keith Mayer, Power Grid’s CFO, Rob Johnson, Power Grid’s COO and all the other individuals at Power Grid has been a rewarding experience. They are not only great leaders but also great people. This is yet another example of our philosophy that people are the most important investment we make. While it is difficult to see our partnership end, we are excited to know that we found a great partner in Blackstone Energy Transition Partners to help take the Company to the next level.”

“We have enjoyed our partnership with Shorehill Capital,” said Rick McClure. “Their approach, resources and strategic guidance helped make Power Grid what it is today. I have personally worked with the Shorehill team multiple times and their strategy of patiently building businesses in the right way creates not just great companies but great companies with great cultures.”

Lincoln International acted as financial advisor to Power Grid and Katten Muchin Rosenman LLP served as legal counsel to Power Grid.

About Shorehill Capital

Shorehill Capital LLC is a Chicago-based private equity firm with a passion for creating superior companies. Shorehill is focused on making control equity investments in North American engineered industrial products, industrial services, and value-added distribution companies with enterprise values ranging from $20 million to $150 million, and add-ons of any size. Shorehill seeks opportunities with differentiated business models where its experience, network and investment management approach can have a significant impact on the performance of the business. For nearly 30 years Shorehill’s partners have worked with middle market business leaders to accelerate growth and improve operational performance through structured investment management plans. For additional information, please visit www.ShorehillCapital.com.

About Power Grid Components, Inc.

Power Grid was formed by electric grid products industry veteran Rick McClure and Shorehill Capital LLC to acquire and grow companies that manufacture and supply products used in the North American electric power grid. Currently, the Company is a supplier of high voltage disconnect switchgear, high quality porcelain and glass insulators, as well as instrument transformers for revenue metering and protective relaying. These products are sold to electric utilities, original equipment manufacturers and other customers supporting the electric grid.