Blackstone’s $2.5bn Acquisition of Champions Group
- 5 days ago
- 5 min read
By Ben Motamed, Archie Clarke, Emmanuel Olowe and Charlie Bark (Durham University), Ishan Panchal, Aaryan Kochhar, Lachlan Thomas, Oliver Moses and Zac Zaga (Monash University)
Photo: Jeffery Blum (Unsplash)
Overview of the deal
Acquirer: Blackstone (BXPE)
Target: Champions Group
Previous Investor: Odyssey Investment Partners
Total Transaction Size: $2.50B
EV/EBITDA: ~18x
Debt Financing: >$1.0 billion (Private Credit, SOFR + 4.5%)
Announcement Date: 17/02/2026
Close Date: Expected H1 2026
Target Advisor: William Blair & Company (Lead Financial), Piper Sandler & Co. and Robert W. Baird & Co. (Co-Financial), Latham & Watkins LLP (legal)
Acquirer Advisor: Weil, Gotshal & Manges LLP (legal)
On 17 February 2026, Blackstone announced that funds managed by its perpetual private equity strategy, BXPE, had agreed to acquire Champions Group from Odyssey Investment Partners, with Odyssey and the management team retaining a significant minority stake to support continuity and long term alignment. The transaction will see Odyssey Investment Partners and the existing management team retain a significant minority interest, reinforcing both strategic continuity and alignment. Although Blackstone did not publicly disclose the financial terms, press reports valued the transaction at approximately $2.5bn, implying an EV/EBITDA multiple of around 18.5x.
Originally founded as Service Champions and rebranded in August 2023, Champions Group has developed into a scaled residential services platform spanning HVAC, plumbing and electrical offerings, with a business model supported by recurring demand and essential service characteristics. The acquisition reflects Blackstone’s conviction in the resilience and cash generation of the sector, attributes that also align closely with BXPE’s focus on long-duration assets. The deal also highlights the broader acceleration of M&A activity across residential home services, with William Blair noting that this transaction marked its third advisory assignment involving an HVAC, plumbing and electrical services platform in the prior 12 months.
Company Details (Acquirer - Blackstone Inc.)
Blackstone Inc. is one of the world’s largest alternative asset managers, managing capital on behalf of institutional and individual investors globally. The firm generates revenue through management fees and performance-based earnings. Blackstone Inc. specialises in private equity, real estate, credit, and infrastructure, with a focus on long-term value creation through active ownership and strategic capital allocation across a diversified portfolio.
Founded: 1985
Headquartered: New York, New York (USA)
CEO: Steven A. Schwarzman
Number of employees: ~4,895 (as of Dec 31, 2024)
Market Cap: ~135B (19/03/2026)
EV: ~$153B
LTM Revenue: $14.5B
LTM EBITDA: $6.62B
LTM EV/Revenue: 10.6x
LTM EV/EBITDA: 23.1x
Recent Transactions: $800m USD acquisition of Hamilton Island (2025); $6.5bn USD acquisition of Enverus (2025); $5.65bn USD acquisition of Safe Harbour Marinas (2025)
Company Details (Target - Champions Group)
Champions Group is a leading residential services platform providing home services spanning HVAC, plumbing and electrical services. The company operates a scale, integrated platform across tier one metropolitan markets, supported by over 1,800 field technicians. Originally founded in 2000 as Service Champions, Champions Group rebranded following its acquisition by Odyssey Investment Partners. The company is characterised by its ‘buy and build’ strategy, a membership-based go-to market model and their longstanding commitment to customer service.
Founded: 2000
Headquartered: Orange County, California
CEO: Frank Di Marco
Number of employees: 2,400
Market Cap: N/A
Enterprise Value: $2.5BN
LTM Revenue: N/A
LTM EBITDA: ~$140M
LTM EV/Revenue: N/A
LTM EV/EBITDA: ~18x
Projections and Assumptions
Short-Term Consequences
In the immediate term, the transaction is anticipated to contribute positively to Blackstone's distributable earnings, supported by Champions Group's ~$140 million EBITDA base and the resilient, recurring nature of its membership-driven revenue model.
From a market reaction standpoint, Blackstone shares rose modestly by 1.18% following the announcement, with analysts at TD Cowen and Piper Sandler noting the deal reflects Blackstone's strategic pivot toward hard services as a more resilient asset class. However, BX shares have since declined approximately 2.88% over the past month and 30.5% year to date as of 23/03/2026, a movement broadly attributed to wider market conditions rather than deal-specific concerns.
Regarding product offering, Champions Group's scaled, integrated platform spanning HVAC, plumbing and electrical services across Tier 1 metropolitan areas, supported by over 150,000 active members. Blackstone's immediate focus will centre on workflow digitalisation and procurement optimisation rather than service line disruption.
Geographically, operations are currently centered in Orange County, California and Tier 1 metropolitan markets. Importantly, the company has an established bolt-on acquisition track record predating Blackstone's involvement. Most notably the January 2026 acquisition of North Texas–based Lex Cooling, Heating, Plumbing & Electrical, completed just weeks before the Blackstone deal was announced, executed under Odyssey's ownership. This suggests that geographic expansion via bolt-on acquisitions is already actively underway.
On leadership, CEO Frank DiMarco and the Odyssey team will retain significant minority stakes, ensuring strong management continuity as Blackstone deploys its liquid capital for add-on acquisitions.
Long-Term Upsides
The acquisition of Champions Group by Blackstone’s perpetual private equity strategy (BXPE) offers significant long-term strategic advantages. Firstly, the perpetual nature of the BXPE fund provides a unique edge over traditional private equity. Unlike closed end funds facing pressure to exit within a five to seven year window, Blackstone can focus on long term compounding. This alignment is perfectly suited for the fragmented residential services market, allowing Champions Group to execute an aggressive buy and build strategy to consolidate local operators without the disruption of frequent ownership changes.
Secondly, the partnership will drive substantial operational and technological synergies. Blackstone intends to integrate its institutional infrastructure and data driven analytics into Champions Group’s workflows. In an industry where many local competitors rely on manual processes, transitioning to AI driven route optimisation and digitised customer management should significantly improve operating margins. Furthermore, Blackstone’s immense scale provides superior purchasing power for equipment, effectively offsetting inflationary pressures.
Thirdly, ESG considerations represent a core pillar of value creation. As homeowners prioritise energy efficiency, Blackstone’s investment will accelerate the transition toward green solutions, such as high-efficiency heat pumps. Finally, the deal positions Champions Group to capitalise on the structural growth of the US home services industry, currently valued at over $600 billion. By leveraging Blackstone’s scale, the company can deepen its membership based model, securing a predictable and high quality revenue stream in a recession-resilient sector.
Risks and Uncertainties
The primary risk is one of margin pressure. Blackstone paid a large premium multiple of around 18x on EBITDA. This puts enormous weight on the operational levers to preserve the current profitability. If execution is not flawless, Blackstone faces a real threat of margin compression on a compressed base – reducing returns.
With significant leverage almost certainly playing a role, the need to uphold high margins creates a direct tension between operating cash flow and fixed debt obligations. The most vulnerable window will be the first 18-24 months, during which attention will turn to the Champion Group’s capacity to absorb future bolt-on acquisitions whilst keeping fiscal discipline.
Secondly given this premium, the deal has set a new benchmark for the home servicing industry. There is upward anticipation of comparable transactions. If subsequent transactions fail to match the high premium set by this Champions deal, the sector’s valuation framework may be called into question, forcing downward revision risks across assets.
“We are excited to partner with Blackstone in the next chapter of growth for Champions Group…we look forward to continuing to provide our support as they further expand an outstanding platform to serve customers at the highest level, with the added benefit of Blackstone’s strategic and financial resources.” – Brian Kwait, CEO, and Dennis Moore, Managing Principal, Odyssey Investment Partners.