Information on the Target

CHA Consulting, Inc. ("CHA") is excited to announce its acquisition of Gryphon International Engineering Inc. ("Gryphon"), a company based in St. Catharines, Ontario. Gryphon specializes in providing a comprehensive array of design services tailored to the thermal power and energy sectors. This acquisition enhances CHA's capabilities in managing projects related to thermal generation, renewable energy, and district energy systems. Furthermore, Gryphon's inclusion in CHA's portfolio will facilitate the expansion of CHA's international reach.

Gryphon's expertise in the energy sector aligns well with CHA’s existing service offerings. With this strategic move, CHA not only strengthens its competitive position in the power and energy market but also enhances its ability to serve clients with a wider geographical scope.

Industry Overview in Canada

The energy sector in Canada presents a landscape characterized by a strong emphasis on sustainability and innovation, particularly in the thermal and renewable energy divisions. Recent advancements in technology and a shift towards greener solutions have prompted significant investments in renewable energy sources, such as wind and solar. As a result, the market has experienced substantial growth, with companies exploring new avenues for energy generation and distribution.

Provincial policies are increasingly focused on reducing carbon footprints and meeting climate commitments, which presents both opportunities and challenges for engineering firms engaged in energy projects. Integrated energy solutions combining thermal and renewable resources are becoming more vital as stakeholders aim for efficiency and sustainability.

The Canadian government's commitment to clean energy initiatives has led to increased funding and incentives for companies that engage in designing and implementing energy-efficient solutions. Such an environment is conducive to the success of firms like Gryphon that are equipped to meet the evolving demands of this sector.

The Rationale Behind the Deal

This acquisition aligns with Long Point Capital's strategic objective of strengthening its portfolio of design and construction-related companies. By integrating Gryphon into its operations, CHA can provide enhanced service offerings while addressing the escalating demand in the power and energy industries. This consolidation is anticipated to yield synergies that optimize operational efficiency and service delivery.

The acquisition also fits Long Point's ongoing strategy of pursuing complementary organizations in the engineering sector. Gryphon's established reputation and technical expertise will support CHA's growth trajectory, allowing the firm to capitalize on emerging market opportunities in Canada and beyond.

Information About the Investor

Long Point Capital is a private equity firm with a distinguished track record of investing in and developing companies within the architecture, engineering, and project management sectors. The firm focuses on acquiring businesses that demonstrate potential for growth and innovation while aligning with its existing portfolio, which includes prominent firms like CHA, Cumming Group, and EYP.

With a keen eye for identifying and integrating complementary organizations, Long Point Capital has successfully executed its strategy of building a robust platform. The firm's commitment to collaboration and continuous improvement underscores its dedication to creating value for its portfolio companies and their clients.

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This acquisition is poised to be a strategic investment for CHA, significantly enhancing its capabilities in the energy sector. The growing demand for integrated energy solutions will likely create substantial opportunities for CHA and Gryphon to leverage together. Given Gryphon's expertise and CHA's established market presence, the combined entity should excel in addressing the needs of energy clients.

Furthermore, with Canada's increasing investment in renewable energy, the partnership is well-positioned to meet market demands head-on. The synergy between CHA's extensive resources and Gryphon's specialized services could lead to innovation and efficiency gains, ultimately contributing to enhanced client satisfaction.

In conclusion, this acquisition represents a well-considered step for Long Point Capital and CHA Consulting, Inc. The integration of Gryphon is expected to deliver value through expanded service offerings and entry into new markets, reflecting a prudent investment decision in a growing industry.

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