Shermco Industries Completes Acquisition of Magna Electric Corporation

  Shermco Industries Completes Acquisition of Magna Electric Corporation

    Combination Creates Leading Provider of Electrical Services to Energy,
        Industrial, Utility and Other Sectors Spanning U.S. and Canada

Business Wire

IRVING, Texas -- January 7, 2014

Shermco Industries, a leading provider of electrical services to energy,
utility, infrastructure, industrial and other U.S. companies, today announced
that it has completed its acquisition of Magna Electric Corporation (MEC), a
leading Canadian electrical power system engineering, testing, construction,
manufacturing and commissioning service company based in Saskatchewan.

The combination of Shermco and MEC creates the largest independent electrical
testing and maintenance service company in North America, serving energy,
industrial and utility customers across the U.S., Canada and other select
international markets. MEC provides electrical consulting, manufacturing,
construction and field testing/commissioning services that are highly
complementary to those provided by Shermco, accelerating Shermco’s strategy to
offer a full range of its services to a broad, global customer base. The
transaction immediately establishes Shermco in Western Canada, including
Saskatchewan, Alberta and Manitoba, and positions the company to address the
rapidly growing markets in Canada and the U.S. for electrical services to
pipelines, refineries, alternative energy and other sectors. The acquisition
of MEC approximately doubles Shermco’s operating scale, brings a complementary
customer base and significantly expands the company’s ability to serve
trans-border customers and projects. The combined company will have over 1,000
qualified electrical workers in locations across North America.

“MEC has built an outstanding business in the rapidly growing Canadian
markets, and we are thrilled to be joining forces with them to further
establish Shermco Industries as a global leader in the electrical power
maintenance and service industry. The combination uniquely positions Shermco
to serve current and future customers across the U.S. and Canada, particularly
those with trans-border projects and facilities and those which require
large-scale electrical maintenance outages to be completed in minimal
timeframes,” said Ron Widup, Shermco President and CEO. “MEC shares our focus
on maintaining an exceptional safety culture and providing outstanding
customer service. In years past, our two companies have partnered on a number
of projects, including the first phase of the Keystone pipeline and Hurricane
Sandy disaster recovery efforts. We couldn’t be more excited to be creating a
North American powerhouse in electrical testing and maintenance, which we
believe is poised to take advantage of powerful forces driving growth in the
energy, industrial and other sectors.”

The full MEC workforce and senior management team will be integrated with
Shermco and operations at all of MEC’s existing facilities are expected to
continue.

Kerry Heid, CEO of MEC, commented, “We are very pleased to join the Shermco
team and contribute to the significantly expanded scale and extended reach of
the combined company. There are tremendous opportunities being created as
Canadian companies work to meet strong demand for energy across North America,
as well as a wide range of other products and services. By joining forces, we
will be better positioned to help our customers meet those critical needs.”

In December 2012, Shermco management partnered with funds managed by the GFI
Energy Group of Oaktree Capital Management, L.P., an investment group focused
on North American power and energy sectors. Oaktree brings significant
industry expertise, relationships, resources and financial backing to aid in
Shermco’s long-term strategy.

Terms of the transaction were not disclosed.

More information about the transaction can be found here:
http://www.shermco.com/Shermco-MEC.aspx

About Shermco

Shermco Industries is a leading independent provider of safe and reliable
acceptance testing, commissioning, maintenance, repair and remanufacturing of
electrical equipment and power distribution systems. With service centers
located throughout North America, certified technicians and engineers focus on
servicing both scheduled and unexpected projects for large commercial,
industrial and utility customers. Shermco is a leader in electrical safety and
technical training as well as industrial electrical contracting, utility wind
turbine maintenance and disaster recovery services. Shermco Industries is a
member of the Electrical Apparatus Service Association, American Wind Energy
Association, Professional Electrical Apparatus Recyclers League, and the
InterNational Electrical Testing Association. For more information about
Shermco Industries, visit www.shermco.com

Contact:

Media:
Sard Verbinnen & Co
John Christiansen/Alyssa Linn
415-618-8750
jchristiansen@sardverb.com/ alinn@sardverb.com
or
S. Bell Public Relations
Sandy Bell
972-800-1745
sandybell@sbellinc.com
 
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