Morgan Stanley Capital Partners Agrees to Sell Sila Services

New York -

Investment funds managed by Morgan Stanley Capital Partners ("MSCP") today announced they have entered an agreement for the sale of Sila Services ("Sila" or the "Company") to the Private Equity business at Goldman Sachs Alternatives ("Goldman Sachs"). 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 provider of residential HVAC, plumbing and electrical services operating across the U.S. 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 journey.

"We are proud to have partnered with Jason Rabbino and the Sila team as they built an industry-leading residential services platform," said Adam Shaw, Managing Director and Head of Business Services at MSCP. "Sila has cemented itself as a differentiated, high-growth business in the sector, and we have appreciated the opportunity to partner with the entire Sila team during this period of transformational growth. We are extremely grateful for their hard work and dedication over the past few 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 careers for tradespeople and customer excellence," said Jason Rabbino, Chief Executive Officer of Sila. "MSCP has been a highly value-added partner to the entire Sila team, steadfastly supporting our organic growth ambitions, operational initiatives and differentiated M&A approach with owners. We thank MSCP for their tremendous contributions in building Sila into the business it is today."

Sila was MSCP's first investment in and now its first exit from the distributed field services sector, which has become a core sub-sector within MSCP's Business Services vertical. Since investing in Sila in 2021, MSCP has partnered with a number of other businesses across the distributed field services sub-sector, including outdoor home care and maintenance provider Fairway Services, residential roofing company Allstar Services, outsourced HOA management services provider RowCal, and residential and commercial mitigation and restoration company American Restoration.

Closing is subject to customary closing conditions, including the receipt of all required regulatory approvals.

William Blair acted as lead financial advisor to Sila, with co-advisory support from Robert W. Baird & Co. Debevoise & Plimpton 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 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.

Morgan Stanley Investment Management

Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,400 investment professionals around the world and $1.6 trillion in assets under management or supervision as of September 30, 2024. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment banking, securities, wealth management and investment management services. With offices in more than 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For more information about Morgan Stanley, please visit www.morganstanley.com.

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.

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