Apex Service Partners nears minority stake sale at $10 billion valuation
Private equity interest in residential services continues to build as investors pursue businesses with steady cash flows and room for consolidation across fragmented local markets. In that backdrop, Apex Service Partners is nearing a minority stake sale that could value the home services company at about $10 billion, including debt.
Highlights
- Apex Service Partners is working with Goldman Sachs to sell a minority stake at a $10 billion valuation, according to sources familiar with the matter.
- In 2023, Alpine Investors moved Apex into a $3.4 billion single-asset continuation vehicle, with Blackstone Strategic Partners and others participating.
- Private equity interest in residential services like Apex's HVAC, plumbing, and electrical offerings continues to rise due to stable cash flows and fragmented market structures.
Stake sale process and deal background
As first reported by Reuters, Apex is working with Goldman Sachs on a process to sell a minority stake, according to a source familiar with the matter and two other people who spoke on condition of anonymity because the discussions are private.The identity of the new investor and the exact size of the stake could not be determined. Goldman declined to comment, while Alpine Investors and Apex did not immediately respond to requests for comment.
Alpine, the private equity firm backing Apex, launched the company in 2019. In 2023, it moved Apex into a single-asset continuation vehicle in a $3.4 billion transaction, a structure that allows buyout firms to keep ownership while offering some existing investors a chance to cash out.
Blackstone Strategic Partners, HarbourVest Partners, Lexington Partners and Pantheon took part in that 2023 deal.
Residential services appeal to buyout firms
Apex is based in Tampa and provides heating, ventilation and air conditioning, plumbing and electrical services. According to its website, the company operates in nearly every U.S. state and employs more than 7,800 tradespeople.Private equity firms have increasingly targeted the residential services sector in recent years, attracted by dependable cash generation and the prospect of strong valuations in markets that remain highly fragmented among small local operators.
Alpine is headquartered in San Francisco, California, and has nearly $19 billion in assets under management.
In our earlier coverage of JPMorgan Chase’s acquisition capacity, we explained that CEO Jamie Dimon said the bank could deploy up to $20 billion on deals over the next few years, while still treating M&A as a last resort. We noted that JPMorgan is prioritizing organic growth and would only pursue targets that fit its core businesses and can be tightly integrated, mindful that a large transaction could also invite closer regulatory scrutiny.
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