REGINA - An electric service company called Shermco Industries based in Dallas has bought out Saskatchewan's Magna Electric Corp.
Combined, they will create one of the largest electrical testing and maintenance companies serving industrial and energy clients in North America.
On its own, Magna Electric takes in about $85 million in revenue and has developed a wide reach with 650 employees working regularly on projects across North America.
Kerry Heid is the CEO in Regina and he is confident that the takeover will help expand operations on both sides of the border.
He also notes the familiarity and previous working relationship between Shermco and Magna after collaborating on projects like the Keystone pipeline for the past few years.
Heid says senior managers at Magna are expected to stay with the Shermco team and Canadian operations will continue at facilities and offices in Saskatchewan.
He says the takeover made financial sense for the small ownership group in the province.
“A large private equity company with deep pockets backing us is going to be able to help us get to that next level in our growth,” Heid said.
Heid also expects to see more hiring on the Western Canadian side in the next five years.