According to sources familiar with the matter, private equity firm Gi Partners is considering selling its portfolio company American Residential Services, with the deal potentially valuing the company at over $3.5 billion.

Sources say Gi Partners has begun preliminary discussions with investment banks regarding a potential sale. American Residential Services is one of the largest residential HVAC and plumbing service providers in the United States. If the sale is successful, it will become one of the significant private equity transactions of the year. Negotiations are still at an early stage, and the final deal terms may change. Gi Partners acquired American Residential Services in 2017 and has since expanded its business scale through a series of acquisitions.