American Residential Services (ARS), a heating, ventilation, air conditioning, and plumbing services provider, may be sold for over $3.5 billion. GI Partners, the private equity owner, is reportedly exploring the sale, according to sources familiar with the matter. Rothschild & Co’s Business Services franchise is managing the early stages of the sale process. The sources requested anonymity due to the private nature of the discussions.
ARS, based in Memphis, Tennessee, generates approximately $200 million in annual earnings before interest, taxes, depreciation, and amortisation (EBITDA) and over $1.5 billion in revenue. GI Partners became the majority owner of ARS in 2020, with existing investor Charlesbank Capital Partners and the company’s management retaining their investments. GI Partners invests primarily in healthcare, software and services companies and has raised more than $47 billion to date.
The potential sale reflects the continued interest of private equity firms in residential services investments. This sector has demonstrated resilience amid market volatility due to consistent, recurring demand. Recently, Blackstone acquired Champions Group, and Oak Hill Capital agreed to purchase Guild Garage Group for more than $800 million.
ARS completes 1.2 million customer visits annually and employs over 6,000 people, including more than 2,500 skilled technicians, according to GI Partners’ website. The company provides essential home services, making it an attractive target for investors seeking stable returns. GI Partners and Rothschild declined to comment. ARS did not immediately respond to requests for comment.
