American Residential Services exploring sale, report says

The private equity sponsor of residential HVAC, plumbing, and electrical platform American Residential Services (ARS) is exploring a sale of the company, Reuters reported this week, citing three unnamed sources. 

The big picture: The report comes just one month after private equity giant Blackstone acquired a majority stake in Champions Group in a deal valuing the company at approximately $2.5 billion, as Homepros previously reported. 

What’s happening: “Memphis, Tennessee-based ARS generates around $200 million of annual ‌[EBITDA] and over $1.5 billion of revenue,” Reuters wrote, adding that a sale could value the company at over $3.5 billion. 

• Yes, but: Several sources familiar with ARS tell Homepros that the company’s EBITDA is lower than the figure Reuters cited — though they declined to share specifics — and that the $3.5 billion figure is high. A representative for ARS declined to comment. 

Zoom out: Private equity firm Charlesbank Capital Partners acquired ARS in 2014, and San Francisco-based GI Partners acquired a majority stake in 2020, which it retains today. ARS currently operates in 29 states.

• Looking ahead: The process, which is being run by investment bank Rothschild & Co, is at an “early stage,” according to Reuters.