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By Abigail Summerville
NEW YORK (Reuters) – Morgan Stanley’s middle-market buyout arm is exploring a sale of Sila Providers that might worth the residential companies firm at about $1.5 billion, together with debt, folks conversant in the matter stated on Friday.
King Of Prussia, Pennsylvania-based Sila, which is a supplier of companies together with heating, air-conditioning, and plumbing, is working with funding financial institution William Blair on the sale course of, the sources stated, requesting anonymity because the matter is confidential.
Sila might command a valuation equal to about 15 instances its 12-month earnings earlier than curiosity, taxes, depreciation and amortization of practically $100 million, the sources stated.
Morgan Stanley Capital Companions, which owns Sila, declined to remark. William Blair and Sila didn’t reply to requests for remark.
Based in 1989, Sila operates over 30 manufacturers that present companies together with residential heating, air flow, and air-con, electrical, and plumbing within the Northeast, Mid-Atlantic, and Midwest components of the USA.
MSCP, which acquired Sila for an undisclosed quantity in 2021, focuses on buying mid-sized companies and is housed inside Morgan Stanley Funding Administration, which manages $1.5 trillion of property.
Non-public fairness companies have historically been prolific acquirers of companies within the residential companies trade, due to their regular money flows and the chance to drive consolidation within the fragmented sector.
Common Atlantic invested in Flint Group earlier this yr, whereas L Catterton acquired LTP House Providers Group in 2022. Residential companies agency The Wrench Group counts TSG Shopper Companions, Leonard Inexperienced & Companions, and Oak Hill Capital as buyers.
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