Morgan Stanley PE to Sell HVAC Firm to Goldman Sachs
US: Morgan Stanley's private equity division is selling its heating, ventilation, and air conditioning (HVAC) business, Sila Services, approximately three years after acquiring it to capitalise on growing sector demand to the private equity arm of Goldman Sachs Alternatives. The transaction values Sila at roughly USD1.5 billion, including debt. HVAC businesses have become attractive investments for private equity due to their steady cash flows and essential service nature, especially amid increased construction activity fuelled by lower borrowing costs and environmental regulations promoting eco-friendly HVAC solutions. Merger and Acquistion (M&A) activity in the HVAC sector rose 6.9% year-over-year as of last month, according to M&A advisory firm Capstone Partners.
Source: Reuters