Sila Services Announces Equity Investment From Goldman Sachs Alternatives' Private Equity Business
Goldman Sachs to acquire majority stake from Morgan Stanley Capital Partners and other existing investors
Sila Services ("Sila"), a leading provider of HVAC, plumbing and electrical services, today announced that the Private Equity business at Goldman Sachs Alternatives ("Goldman Sachs") will acquire a majority stake in the company from affiliates of Morgan Stanley Capital Partners ("MSCP"), subject to obtaining customary regulatory approvals. As part of the transaction, Sila management will continue to lead the Company and retain a significant minority stake. Financial details of the transaction were not disclosed.
Headquartered in King of Prussia, Pennsylvania, Sila is a leading U.S. provider of residential HVAC, plumbing and electrical services operating across the Northeast, Midwest and Mid-Atlantic regions. Since MSCP's investment in 2021, Sila has rapidly developed into a residential services leader through a combination of consistently strong organic growth, strategic M&A and significant platform capability building. Built upon core values of putting people first and prioritizing customer service, Sila is dedicated to providing a distinctive level of quality across every aspect of the customer experience.
Nicole Agnew, Partner in Private Equity at Goldman Sachs Alternatives, commented "Sila is a truly special organization and a business we have been admiring from afar for quite some time. We are thrilled to partner with Jason Rabbino and the entire Sila team to further accelerate the Company's growth trajectory – organically and via M&A – building upon the impressive foundation they thoughtfully developed over the years."
"I am very proud of what Sila's team has accomplished in partnership with MSCP during this chapter of the Company's growth to build Sila into a truly distinctive residential services operating company emphasizing building careers for tradespeople and delivering consistent customer excellence," said Jason Rabbino, Chief Executive Officer of Sila. "We are excited to partner with Goldman Sachs on the next phase of the Company's growth, and benefit from its global platform, deep experience in consumer & consumer services sectors, and differentiated value creation resources."
William Blair acted as lead financial advisor to Sila, with co-advisory support from Robert W. Baird & Co. Debevoise & Plimpton LLP served as legal advisor to MSCP. Goldman Sachs & Co LLC served as exclusive financial advisor and Weil, Gotshal & Manges LLP served as legal counsel to Goldman Sachs.
About Sila Services
Sila Services is a leading home services platform, operating over 30 brands throughout the Northeast, Mid-Atlantic, and Midwest. The companies of Sila Services, with a history of people-focused trade industry leadership dating back to the early 1900s, offer a complete range of residential and commercial services in HVAC, plumbing, electrical, water treatment, indoor air quality, and home performance solutions. The company's mission is to attract, develop and advance the careers of the best people in the home services trades, ensuring an unmatched level of service and customer satisfaction in residential services and solutions. For more information, visit www.silaservices.com.
About Private Equity at Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $450 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs. The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets. The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world's leading institutions, financial advisors and individuals. Goldman Sachs has over $2.8 trillion in assets under supervision globally as of December 31, 2023. Established in 1986, Private Equity at Goldman Sachs Alternatives has invested over $75 billion since inception. The business combines a global network of relationships, unique insight across markets, industries and regions, and the worldwide resources of Goldman Sachs to build businesses and accelerate value creation across its portfolios.
About Morgan Stanley Capital Partners
Morgan Stanley Capital Partners, part of Morgan Stanley Investment Management, is a leading middle-market private equity platform established in 1986 that primarily invests alongside founders and seeks to partner with management teams to build best-in-class companies within business, consumer, industrial and healthcare services. Morgan Stanley Capital Partners seeks to create value in portfolio companies through a transformational organic and acquisition-related growth strategy by leveraging its deep internal operational capabilities and value creation playbook. For further information about Morgan Stanley Capital Partners, please visit www.morganstanley.com/im/capitalpartners.
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