Shorehill Capital LLC has sold Power Grid Components Holdings, Inc. to Blackstone

Power Grid Components, Inc.

Power Grid Components Holdings, Inc. (“PGC” or the “Company”) is a leading provider of mission-critical substation products serving electric utilities, original equipment manufacturers and other customers operating in 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. As a supplier of critical components, 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.

The Deal

Shorehill Capital LLC (“Shorehill Capital”) and electric grid industry veteran Rick McClure formed PGC in 2017 to acquire companies that manufacture and supply products used on the U.S. electric utility grid. The Company 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 growth strategy. Given PGC’s impressive growth, inbound interest and strong future outlook, Shorehill turned to Lincoln International given its industry expertise, process acumen and deep investor relationships to find the next right partner for PGC.

Dave Hawkins, Co-Founder and Managing Partner at Shorehill Capital, commented, “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. Throughout the process, we were impressed by Lincoln’s transaction expertise and their commitment to delivering an exceptional outcome for the investors as well as finding the management team a partner who supported their vision for the Company. From beginning to end, Lincoln managed a highly competitive process, which ultimately led to a fantastic result for both PGC and Shorehill.”

Rick McClure, CEO of PGC, said, “Our leadership team is thrilled to be partnering with Blackstone. We want to thank Lincoln International, who was instrumental in navigating us through a competitive process and helping us find the right partner for our next stage of growth. Lincoln’s process expertise, combined with their deep industry insight and senior level involvement, helped drive an exceptional outcome.”

Our Perspective

Sean Bennis, Managing Director and Co-Head of Lincoln’s Industrial Group, commented, “It’s been an absolute pleasure and privilege to work with Shorehill Capital and the PGC management team. Rick McClure and the leadership team at PGC has created a truly unique platform that will be vital in helping to support the growth and modernization of the U.S. electric utility grid for years to come. We look forward to the future successes of PGC under its new partnership with Blackstone.”

Shorehill Capital

Shorehill Capital 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.

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 track record, having invested over $21 billion of equity globally across a broad range of sectors within the energy industry. Blackstone’s 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.

Blackstone (NYSE: BX)

Blackstone is the world’s largest alternative asset manager. The firm seeks to create positive economic impact and long-term value for its investors. Blackstone does this by relying on extraordinary people and flexible capital to help strengthen the companies it invests in. Its 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.

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