GI Partners is exploring a potential sale of American Residential Services that could value the business at more than $3.5bn, according to sources cited by Reuters.

The process, which is being run by Rothschild, is at an early stage and there is no certainty that a transaction will be completed.

American Residential Services provides heating, ventilation, air conditioning, and plumbing services, generating approximately $200m in EBITDA and over $1.5bn in revenue.

GI Partners acquired the business in 2020 and remains the majority owner, alongside existing investor Charlesbank Capital Partners and the company’s management team.

The potential deal highlights ongoing private equity interest in residential services, a sector characterised by recurring demand and defensive revenue profiles.

The company completes around 1.2 million customer visits annually and employs more than 6,000 people, including over 2,500 technicians.

The sale process comes amid broader deal activity in the sector, with private equity firms continuing to deploy capital into home services platforms.

Recent transactions include Blackstone’s acquisition of Champions Group and Oak Hill Capital’s purchase of Guild Garage Group for more than $800m.

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