Goldman Sachs’ private equity arm to acquire Sila Services

Goldman Sachs’ private equity arm will acquire a majority stake in Sila Services from Morgan Stanley, valuing the company at about $1.7 billion, according to a few people familiar with the matter.

Details: The purchase price represents a ~17x multiple of the company’s 12-month EBITDA, which is just under $100 million, per the people.

• The EBITDA figure includes the value of Sila’s pending acquisitions; excluding them, sources say, the multiple hovers around 20x.
• Sila’s management will continue to run the company and retain a minority stake.

Zoom out: Sila Services operates over 30 HVAC, plumbing, and electrical brands, primarily in the Northeast and Mid-Atlantic.

• Morgan Stanley’s private equity group, Morgan Stanley Capital Partners, bought the company in 2021 for an undisclosed sum, and Reuters reported on September 27 that it was exploring a sale.

What’s next: The closing timeline is unknown, and Sila and Goldman Sachs, along with William Blair, the investment bank working on the sale, didn’t respond to Homepros’ requests for comment.

The bottom line: The deal marks the first major home services platform transaction in over a year and could set the tone for similar deals in the next 12-24 months.

Editor’s note: This story was updated on November 11 to reflect the latest information.