By Abigail Summerville
NEW YORK, May 28 (Reuters) – Home services company Apex Service Partners has agreed to sell a minority stake to Apollo Global Management in a deal that a source familiar with the matter said values the whole company at $10 billion, including debt.Â
Reuters was first to report on Wednesday that the company, backed by private equity firm Alpine Investors, was nearing a minority stake sale at that valuation. Apollo is making a $2 billion investment, another source familiar with the matter said.
In a statement on Thursday, Apex said it will use the funds to continue to expand its national footprint, deepen its multi-trade service offerings and advance its technology and talent infrastructure.
It did not disclose the financial terms and made no further comment on those terms.
The company had been working with investment banks Goldman Sachs and Evercore on the stake sale process.
PRIVATE EQUITY TARGETS RESIDENTIAL SERVICES
Private equity firms have increasingly targeted the residential services sector in recent years, drawn by steady cash flows and the potential for high valuations in fragmented markets made up of small, local operators.
Headquartered in Tampa, Apex provides heating, ventilation and air conditioning (HVAC), plumbing and electrical services. It operates in nearly every U.S. state and has more than 7,800 tradespeople, according to its website.
Alpine launched Apex in 2019 and in a $3.4 billion transaction in 2023, moved it into a so-called single-asset continuation vehicle, a structure that lets private equity firms retain ownership while giving some existing investors the option to cash out.Â
At the time, Blackstone Strategic Partners, HarbourVest Partners, Lexington Partners and Pantheon participated in the deal.
Based in San Francisco, California, Alpine has nearly $19 billion in assets under management.
(Reporting by Abigail Summerville in New York. Editing by Echo Wang and Mark Potter)
