USA Hometown Experts nears majority sale to GHK at a reported low-double-digit multiple, as commercial construction exposure weighs on its valuation

As first reported by Homepros (Alec Stevanovski, October 12, 2026).

USA Hometown Experts, a Memphis-based HVAC, plumbing, and electrical platform backed by MSouth Equity Partners, is set to receive a majority investment from private equity firm GHK Capital Partners, according to people familiar with the matter cited by Homepros. The deal had not closed as of the report and is expected to close in the coming weeks. GHK, USA Hometown, MSouth and Citizens did not return Homepros' requests for comment, so every figure below comes from unnamed sources.

The reported terms.

People familiar with the matter told Homepros the transaction values USA Hometown at north of $400 million, though the exact valuation could not be ascertained. They put annualized EBITDA at roughly $35 million, and two of them placed the multiple in the “low double digits.” According to the same sources, the multiple was weighed down by commercial construction work USA Hometown performs alongside its residential services. Most of its revenue comes from residential service and replacement, they said, but the split with construction was not disclosed.

The comparison points.

Two larger residential platform deals this year give a sense of where service-and-replacement businesses have priced. As we reported in February, Blackstone agreed to acquire Champions Group in a deal valuing the company at about $2.5 billion, on roughly $140 million of annualized EBITDA at around 18.5×. Blackstone's announcement describes Champions as serving the residential repair and replacement market with a membership model of 150,000 active members. In May, as we reported, Apollo's minority investment in Apex Service Partners valued Apex at $10 billion against “over” $500 million of EBITDA, which works out to roughly 20× at most.

Both companies are much larger than USA Hometown, and scale earns a premium on its own. Smaller service businesses have also priced well, though. As we reported, residential service platform Redwood Services traded at roughly 17× in 2025 when Altas Partners took its position, and Redwood then bought the Sierra Platform at 14×+ on $15M+ of EBITDA. Sierra is less than half USA Hometown's reported size and still drew a higher multiple, so size alone does not explain the gap here. Homepros' sources point to construction work, and the mechanics behind that are well understood.

Why construction work gets a lower multiple.

We covered this gap in more detail in “A 15% shift in revenue mix created a $60 million valuation gap.”

Recurring versus re-won revenue. Residential service and replacement is driven by equipment failing and aging, which happens every year regardless of the economy. Maintenance agreements and memberships add contracted visits that turn into repair and replacement calls. Construction revenue has to be won again job by job, and it depends heavily on relationships with general contractors and builders that are often held by the owner or a few key people, which creates key-man risk. Residential service, replacement and maintenance revenue comes from thousands of households and maintenance agreements tied to the company and its brand. That difference is a large part of why buyers pay a premium for residential service and maintenance revenue and not for construction.

Margins. Service and replacement work is usually priced per call or per system and sold directly to a homeowner. Construction work is usually bid against other contractors to a general contractor or developer. Bid pricing tends to produce thinner gross margins, and a fixed-price job can lose money when materials, labor or schedules move.

Cyclicality and backlog risk. New construction rises and falls with housing starts, commercial development and interest rates. A buyer valuing construction earnings has to judge how much of today's backlog will be replaced once it is worked off, and that is harder to predict than demand from installed equipment.

Working capital and retainage. Construction contracts commonly hold back retainage until a project is complete and pay on progress billing, so cash comes in after the work is done. That ties up working capital, which buyers count against the price. Residential service is generally paid at or near the time of the job.

Bonding. Commercial and public projects often require performance and payment bonds, which depend on the company's balance sheet and can come with guarantees. That adds a cost and a constraint that a residential service business does not carry.

Customer concentration. Construction revenue is often concentrated in a handful of general contractors, builders or developers, so losing one account can take a meaningful share of revenue with it.

The asset.

MSouth formed USA Hometown in 2022 out of its Fund IV to acquire businesses providing maintenance, repair, replacement, and new installation services in HVAC, plumbing, electrical, and overhead doors for residential and commercial customers. The company's website lists nine locations and service areas across Alabama, Georgia, Texas, South Carolina, Tennessee, Florida, and West Virginia. Its brands include Metro Plumbing, Heating & Air and Dixie Electric, Plumbing & Air, and the website also lists A/C Contractors, OnTime Service, and Charleston Electric. The Deal reported in May that MSouth launched the sale process in April with Citizens Bank's investment banking arm as sell-side advisor (our May coverage).

What it means.

If the reported terms hold, this deal is a direct example of revenue mix showing up in the price. For owners, the split between service and replacement, maintenance agreements, and construction is one of the first things a buyer will ask about, and it helps to be able to show it by trade, by customer, and by margin before anyone asks. A business with some construction work can still sell well. Buyers will value that part of the earnings separately, and owners who know their own numbers can steer that conversation.