Information on the Target

Total PowerGen Solutions ("Total Power" or the "Company"), headquartered in Mississauga, Ontario, is a premier provider of commercial and industrial power generation solutions across Canada. Established in 1959, Total Power has built a robust reputation by offering integrated power solutions for both backup and prime power applications. The Company operates 17 facilities in provinces including Ontario, Quebec, Alberta, British Columbia, New Brunswick, Newfoundland, and Nova Scotia.

Under the leadership of CEO Andy Rudderham, Total Power has achieved significant organic growth alongside eight strategic acquisitions since partnering with Trivest Partners in late 2018. As of the exit, the Company boasted a dedicated workforce of over 450 employees, more than 11,000 active service contracts, and a monthly average of over 7,500 service calls. Furthermore, Total Power has sold more than 15,000 generators throughout its history and maintains a rental fleet of 375 generators.

Industry Overview in Canada

The power generation industry in Canada is characterized by a growing demand for reliable and sustainable energy solutions, driven by increasing grid instability and environmental policies favoring clean energy. The sector has witnessed a significant transformation, focusing not only on traditional power sources but also on innovative technologies and renewable energy options to address customer needs.

As Canada continues to implement stricter regulations on emissions and seeks to transition toward greener energy alternatives, companies in the power generation market are leveraging advanced technologies to improve efficiency and reduce environmental impact. This has resulted in a surge of investments in infrastructure, equipment, and service capabilities to meet the diversified demands of the market.

The market remains fragmented, with a mix of established players and emerging companies offering niche solutions aimed at enhancing power reliability. This fragmentation presents ample opportunities for growth through consolidation and strategic alliances. Enhanced focus on customer satisfaction and service quality has also become paramount as businesses strive to maintain competitiveness in an evolving landscape.

In this dynamic environment, companies like Total Power are well-positioned to capitalize on the market's growth potential. By integrating advanced operational strategies and expanding service offerings, Total Power is able to respond proactively to the rising demand for dependable power solutions across various industries.

The Rationale Behind the Deal

The sale of Total Power to Audax Private Equity underscores the strong trajectory of the Company under Trivest's guidance. The partnership enabled Total Power to position itself as a leader within a rapidly growing and fragmented market with substantial secular tailwinds. The strategic investments made in service resources and rental assets allowed Total Power to enhance its operational capabilities and fulfill its vision of becoming the foremost provider of PowerGen solutions in North America.

The exit reflects Trivest's commitment to realizing value for both the Company and its stakeholders, marking a successful culmination of a partnership that emphasized organic growth and strategic acquisitions.

Information about the Investor

Audax Private Equity is a prominent investment firm focused on acquiring and growing mid-market companies across various sectors. Known for its hands-on approach, Audax emphasizes operational improvements, strategic growth, and financial performance enhancement within its portfolio companies. The firm employs a value creation strategy that prioritizes partnership with management teams to develop successful, sustainable businesses.

The acquisition of Total Power aligns with Audax's investment philosophy, emphasizing scalability and market leadership within fragmented industries. Audax’s experience in powering growth through strategic initiatives positions it well to support Total Power in its next growth phase.

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The acquisition of Total Power by Audax presents a compelling investment opportunity, given its established market position and the favorable industry dynamics within Canada's power generation sector. Total Power's consistent growth and track record of strategic acquisitions highlight its potential for long-term value creation. The emphasis on enhancing service capabilities and addressing increasing power reliability demands positions the Company favorably for sustained growth.

Furthermore, the backing of a seasoned investment firm like Audax enhances Total Power's ability to scale its operations and seize new market opportunities. The combination of strong leadership, experienced management, and firm support provides a solid foundation for future growth strategies.

However, the success of this investment will heavily rely on Audax's execution of its value creation strategy and ability to navigate the challenges posed by a competitive market. Continuous innovation and responsiveness to market shifts will be critical factors in maintaining Total Power's leadership position.

In conclusion, this deal not only reflects the strategic alignment of both Total Power and Audax but also highlights the promising outlook for continued growth and success in the evolving power generation market.

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