Investment funds managed by Morgan Stanley Capital Partners (MSCP) have reached an agreement to sell Sila Services to the Private Equity business at Goldman Sachs Alternatives. The transaction will see Sila's management continue to lead the company while retaining a significant minority stake. Financial details of the deal remain undisclosed.
Sila, headquartered in King of Prussia, Pennsylvania, provides residential HVAC, plumbing, and electrical services across the U.S. Northeast, Midwest, and Mid-Atlantic regions. Since MSCP invested in 2021, Sila has grown through strong organic growth and strategic mergers and acquisitions.
Adam Shaw, Managing Director and Head of Business Services at MSCP, commented on the partnership: “We are proud to have partnered with Jason Rabbino and the Sila team as they built an industry-leading residential services platform.” He added that Sila has become a high-growth business in its sector.
Jason Rabbino, CEO of Sila, expressed pride in what his team accomplished alongside MSCP: “I am very proud of what Sila’s team has accomplished in partnership with MSCP during this chapter of the Company’s growth.”
This transaction marks MSCP's first exit from the distributed field services sector. Since investing in Sila in 2021, MSCP has engaged with other businesses within this sub-sector including Fairway Services and American Restoration.
The closing is subject to customary conditions and regulatory approvals.
William Blair acted as lead financial advisor to Sila with support from Robert W. Baird & Co., while Debevoise & Plimpton served as legal advisor to MSCP. Goldman Sachs & Co LLC was exclusive financial advisor with Weil, Gotshal & Manges LLP serving as legal counsel for Goldman Sachs.
Morgan Stanley Capital Partners focuses on middle-market private equity investments since 1986 and seeks partnerships with management teams to build leading companies within various sectors.
Morgan Stanley Investment Management manages over $1.6 trillion in assets globally as of September 30, 2024.
Morgan Stanley offers global financial services including investment banking and wealth management through its extensive international presence.