Information on the Target

Right Time Heating and Air Conditioning Canada Inc. ("Right Time") is a prominent independent HVAC contractor in Canada, specializing solely in the residential replacement market. The Company operates from seven locations across Ontario and Manitoba, offering a range of services, including preventative maintenance programs, repairs, and replacements of household HVAC systems. After Clairvest Group Inc.'s investment, the two co-founders will retain ownership of 50% of the business, ensuring their continued involvement in its operations.

Right Time is strategically positioned within the Canadian HVAC industry, where it aims to expand its footprint and enhance its service offerings. With a commitment to quality and customer satisfaction, the Company has established itself as a trusted name in the market, catering to the growing demand for reliable heating and cooling solutions.

Industry Overview in Canada

The HVAC industry in Canada has experienced significant growth in recent years, driven by increasing consumer awareness regarding energy efficiency and environmental sustainability. As homeowners seek to reduce energy expenses and carbon footprints, the demand for residential HVAC systems, particularly those that are energy-efficient, has surged. This trend has created a lucrative market for HVAC contractors dedicated to providing high-quality solutions.

Furthermore, government initiatives and incentives aimed at promoting energy-efficient home improvements have bolstered the market. Programs designed to support the adoption of eco-friendly technologies have paved the way for contractors like Right Time to thrive and expand their service offerings. The rising standard of living and home renovations also contribute to the growing demand in the HVAC sector.

Ontario and Manitoba, where Right Time operates, have experienced considerable population growth, further driving the demand for HVAC services. Urban developments and increasing housing starts present significant opportunities for contractors in these provinces to capture market share and foster growth.

Moreover, the HVAC industry is increasingly prioritizing technological advancements, such as smart home integration and IoT systems, enabling contractors to offer more sophisticated solutions. This technological shift presents an avenue for companies like Right Time to differentiate themselves in a competitive landscape.

The Rationale Behind the Deal

The investment in Right Time by Clairvest Group Inc. and Clairvest Equity Partners V ("CEP V") is a strategic move aimed at scaling the Company's operations and enhancing its capabilities. By partnering with experienced management, Clairvest plans to bolster Right Time’s corporate infrastructure and increase investment in marketing efforts.

This deal represents an opportunity for Clairvest to leverage Right Time’s established presence in the market while facilitating its growth objectives through future acquisitions. Clairvest's support will enable Right Time to navigate the challenges and opportunities that lie ahead in the competitive HVAC landscape.

Information About the Investor

Clairvest Group Inc. is a leading private equity firm based in Canada, recognized for its expertise in making strategic investments in growing companies. With a diverse portfolio across various sectors, Clairvest focuses on long-term value creation through collaborative partnerships with management teams.

Notably, Right Time marks Clairvest’s 52nd platform investment and the eighth investment from CEP V, which has a capitalized co-investment pool of $600 million. Clairvest's commitment to supporting growth-oriented businesses positions it as an attractive partner for companies aiming to expand their market presence.

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The investment in Right Time Heating and Air Conditioning is an astute move for Clairvest Group. Given Right Time's strong market position and the favorable industry trends in Canada, the potential for growth is significant. With the rising demand for energy-efficient HVAC solutions, Right Time is well-positioned to capitalize on this trend, making it a strategic addition to Clairvest’s portfolio.

Clairvest's decision to partner with the existing management team, while ensuring they retain a substantial stake in the business, aligns well with the goal of fostering sustainable growth. This approach not only assures management commitment but also may enhance operational effectiveness through shared interests.

Furthermore, Clairvest’s track record of supporting its portfolio companies with strategic insights and resources indicates this investment could lead to substantial long-term benefits. The intended focus on marketing and infrastructure development could bolster Right Time's competitive edge in the industry.

Overall, this investment appears promising, providing both Right Time and Clairvest with the opportunity to achieve ambitious growth objectives in a thriving sector.

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