Blackstone Inc. secured a private credit loan exceeding $1 billion to finance its acquisition of Champions Group, a residential services company specializing in HVAC, plumbing, and electrical services. This move, reported on March 4, 2026, highlights a trend among buyout firms and lenders to invest in sectors less susceptible to disruption from artificial intelligence. The deal's financing was priced at 4.5 percentage points over the benchmark rate, which is considered one of the tightest spreads in the private credit market.
The acquisition of Champions Group, based in Orange County, California, was announced on February 17, 2026, and is valued at approximately $2.5 billion. This valuation places the acquisition multiple at an estimated 18.5 times the company's annualized EBITDA of around $140 million. Champions Group employs over 2,400 people nationwide and aims to surpass $1 billion in annual revenue. The seller, Odyssey Investment Partners, and Champions' leadership team will retain significant minority stakes in the company.
Blackstone, the world's largest alternative asset manager with $1.3 trillion in assets under management, views this acquisition as a strategic move into the resilient residential home services sector. The deal is structured within BXPE, Blackstone's perpetual capital vehicle, which allows for long-term holding and compounding of assets, rather than the typical five-to-seven-year exit timeframe of traditional private equity funds. Champions Group brings valuable assets to Blackstone, including 1,800 field technicians and roughly 150,000 active membership customers, representing a significant base of recurring revenue.
This $2.5 billion acquisition follows other major investments in the home services sector, such as Goldman Sachs Alternatives acquiring Sila Services for approximately $1.7 billion. The high valuation multiple paid for Champions Group, often seen in software companies, signals strong institutional confidence in the long-term value and growth potential of residential HVAC, plumbing, and electrical services. Blackstone's significant investment indicates a continued appetite for these businesses, which are considered less vulnerable to economic downturns and technological shifts.
