GSAM Tees Up Divcon Controls for Sale

Goldman Sachs Alternatives, a division of Goldman Sachs Alternatives, is reportedly preparing to sell Divcon Controls, a portfolio company acquired in 2024. Sources familiar with the matter indicate that JPMorgan Securities has been appointed as the sell-side adviser for the transaction. Divcon Controls specializes in providing building management and electrical power monitoring services, primarily catering to data centers and other critical facilities. These services enable clients to manage, automate, and monitor their energy and power functions efficiently. The company is headquartered in Dallas. JPMorgan Securities is tasked with preparing marketing materials for Divcon Controls as the sale process moves forward. The company is expected to attract interest from a diverse group of potential buyers, including private equity firms with a focus on sustainability, as well as strategic buyers such as Honeywell and Rockwell Automation. Divcon Controls' services are particularly relevant given the increasing demand for energy management solutions in data centers. Market indicators suggest that Divcon Controls could achieve a valuation significantly higher than its current EBITDA. Industry sources predict a sale price potentially exceeding 15x-17x its $70 million EBITDA, which would value the company between $1 billion and $1.2 billion. This valuation would be above the median multiple for comparable B2C professional, scientific, and technical service providers. The potential sale of Divcon Controls by Goldman Sachs Alternatives signals continued robust activity in the market for companies providing critical infrastructure and energy management solutions, especially those serving the rapidly expanding data center sector. This trend suggests ongoing investor confidence in businesses that offer essential services to mission-critical facilities, driven by cyclical market tailwinds and increasing demand for sustainable and efficient energy solutions.