Traditional service industry as "AI storm" haven: Blackstone (BX.US) plans to acquire home service provider Champions Group for 2.5 billion U.S. dollars.

According to informed sources, Blackstone Inc. (BX.US) is in deep negotiations to acquire residential services provider Champions Group for approximately $2.5 billion. The sources stated that, barring any last-minute obstacles, the acquisition giant could announce the deal to acquire Champions from current owner Odyssey Investment Partners as early as Tuesday. This deal signals that private equity investment firms are seeking safe havens in industries that are less likely to be disrupted by artificial intelligence (AI). Headquartered in Orange County, California, Champions is a basic home services provider specializing in heating, air conditioning, plumbing, and electrical services. Odyssey invested in the company, then known as Service Champions, in 2021, but specific terms were not disclosed. American consumers rely on residential services providers to handle tasks like repairing stoves and maintaining air conditioning systems, making companies like these highly resilient in generating cash flow even during economic downturns. Currently, the threat of disruption from AI is reshaping business models and redefining investment ratings in the technology and services sectors, with acquisition companies now shifting their focus to enterprises like Champions. In recent weeks, investor sentiment has been fluctuating, with concerns that tools like Anthropic and ChatGPT could lead many software-related businesses owned by alternative asset management companies to decline.