Blackstone acquires Texas-based electric grid components company
(Photo by American Public Power Association on Unsplash)
US asset manager Blackstone announced that private equity funds affiliated with it have closed the acquisition of Power Grid Components, an electric grid components manufacturer.
PGC is a domestic designer and manufacturer of a range of components for protection, monitoring and safety applications in electrical substations.
The company is a supplier of high-voltage disconnect switchgear, 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.
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.
“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,” said David Foley, Global Head of Blackstone Energy Transition Partners.
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Demand has surged for grid components in recent years. In December 2022, The American Public Power Association said it was “beyond disappointed” that funding to ramp up production of distribution transformers through the Defense Production Act was not included in a bill to fund the US government, known as the omnibus appropriations bill.
In a survey of APPA’s members, released in October 2022, the average lead time for transformer delivery was 12-18 months, up from a three-month norm that had been the average for years. Some domestic transformer manufacturers were offering bids as long as 3-5 years for transformer delivery.
The industry trade group did its first informal member survey on the topic in November 2021, and responses signaled “serious concern” and not just for transformers.
The survey also identified supply chain constraints among components such as smart meters, bucket trucks, conduits, and bolts, as well as constraints in getting insulators for large transmission lines.
Originally published by Sean Wolfe, and edited with permission, on Power Grid.
