NEW YORK, Sept 27 (Reuters) - Morgan Stanley's ( MS )

middle-market buyout arm is exploring a sale of Sila Services

that could value the residential services company at about $1.5

billion, including debt, people familiar with the matter said on

Friday.

King Of Prussia, Pennsylvania-based Sila, which is a

provider of services including heating, air-conditioning, and

plumbing, is working with investment bank William Blair on the

sale process, the sources said, requesting anonymity as the

matter is confidential.

Sila could command a valuation equivalent to about 15 times

its 12-month earnings before interest, taxes, depreciation and

amortization of nearly $100 million, the sources said.

Morgan Stanley Capital Partners, which owns Sila, declined

to comment. William Blair and Sila did not respond to requests

for comment.

Founded in 1989, Sila operates over 30 brands that provide

services including residential heating, ventilation, and air

conditioning, electrical, and plumbing in the Northeast,

Mid-Atlantic, and Midwest parts of the United States.

MSCP, which acquired Sila for an undisclosed amount in 2021,

focuses on acquiring mid-sized businesses and is housed within

Morgan Stanley Investment Management, which manages $1.5

trillion of assets.

Private equity firms have traditionally been prolific

acquirers of businesses in the residential services industry,

because of their steady cash flows and the opportunity to drive

consolidation in the fragmented sector.

General Atlantic invested in Flint Group earlier this year,

while L Catterton acquired LTP Home Services Group in 2022.

Residential services firm The Wrench Group counts TSG Consumer

Partners, Leonard Green & Partners, and Oak Hill Capital as

investors.