Morgan Stanley exploring $1.5 billion Sila Services sale

Morgan Stanley is exploring a sale of Sila Services that could value the company at “about” $1.5 billion, Reuters reported. 

Why it matters: The potential sales price implies a roughly 15x multiple of the company’s near-$100 million EBITDA, according to Reuters. 

Catch up: Morgan Stanley Captial Partners, an arm of Morgan Stanley, purchased the company in 2021 for an undisclosed sum.

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

What’s happening: The deal would be the first major home services platform sale in over a year, following General Atlantic’s investment in Flint Group last August.

• No potential buyers have been named yet, and neither Sila Services nor William Blair, the investment bank working with Sila, responded to Homepros’ request for comment. 

Of note: The 15x multiple that Reuters reported is likely on the low end, a few people familiar with the matter told Homepros.

The bottom line: The multiple Sila fetches in the case of a sale will be an important comp for residential HVAC owners and investors moving forward. 

Editor’s note: This story has been updated to reflect the latest information.