Blackstone Inc. is in the late stages of acquiring Champions Group, a residential services company, for roughly $2.5 billion, according to people familiar with the situation. The transaction would transfer ownership from Odyssey Investment Partners to the private equity firm.
Sources say the deal could be finalized as early as Tuesday, unless unforeseen issues surface during the closing process. No additional timing or financing details have been provided by the parties identified by sources.
Based in Orange County, California, Champions Group focuses on a suite of essential home services - heating, air conditioning, plumbing and electrical work. The company had previously operated under the name Service Champions prior to being acquired by Odyssey Investment Partners in 2021 for an undisclosed sum.
The prospective purchase forms part of a broader pattern among private equity investors who are directing capital toward segments seen as more insulated from automation and artificial intelligence threats. Residential services, which require on-site technical labor and routine maintenance, are cited by observers as an example of such sectors.
Context and implications
While detailed terms beyond the reported roughly $2.5 billion valuation were not disclosed by the sources, the proposed transaction underscores private equity interest in businesses providing steady, recurring demand linked to households. Champions Group's roster of trade services - HVAC, plumbing and electrical - represent categories that typically involve direct labor and localized service delivery.
Odyssey Investment Partners' acquisition of the company in 2021 remains characterized by an undisclosed purchase price, leaving that prior valuation detail unavailable in public reporting tied to the current deal.
Key points
- Blackstone is reported to be close to buying Champions Group for about $2.5 billion from Odyssey Investment Partners.
- Champions Group provides core residential services including heating, air conditioning, plumbing and electrical work and is based in Orange County, California.
- The move illustrates private equity appetite for sectors perceived as less vulnerable to disruption from artificial intelligence technologies.
Risks and uncertainties
- The transaction could be delayed or altered if unexpected complications arise before closing - a risk that affects deal timing and certainty.
- Specific financial terms aside from the reported roughly $2.5 billion figure and prior ownership details are limited in available reporting, leaving some valuation history and deal structure elements unclear.