Dubin Clark, a private equity firm focused on building niche market leaders in the lower middle market, has sold portfolio company Sila Heating & Air (Sila) to funds affiliated with Morgan Stanley Capital Partners. Financial terms of the transaction have not been disclosed.
Sila is a specialist provider of HVAC replacement, service, maintenance, plumbing solutions, and water treatment. The company is headquartered in King of Prussia, PA and services residential customers in the greater Philadelphia, Boston, DC, NY/NJ/CT tri-state area, and Hudson Valley regions.
Dubin Clark launched the Sila HVAC platform in July 2019 and subsequently led the acquisition of six add-ons to build scale, service breadth, and geographic reach. In addition, Dubin Clark invested in the platform’s team, operations, and systems to drive growth and regional market leadership.
Lou Pellegrini, CEO of Sila, comments: “Making the decision to partner with Dubin Clark was the best decision of my career aside from getting into this business twenty years ago. We truly worked as partners from the very beginning and efficiently accomplished in months that would have taken years of frustrating and expensive trial and error on our own.” Pellegrini adds: “The final outcome exceeded our wildest expectations. I learned a lot, achieved the goal of taking our business to the next level, and had some fun along the way. We look forward to partnering with Morgan Stanley Capital Partners to continue our growth and further success.”
Mike Hompesch, Partner at Dubin Clark, says: “We could not be more pleased with the progress made at Sila during our ownership. We would like to thank Lou and the entire team for making tremendous operational progress while also managing the integration of six add-on acquisitions. In addition, we would like to thank our Operating Advisor, John O’Brien, who was instrumental in helping us build the platform’s fundamentals since day one. We are confident that Sila will continue to thrive on this strong foundation.”
Cowen, a full-service independent investment bank, acted as the exclusive financial advisor to Sila Heating & Air and Dubin Clark.