PE Gate and co-investors are acquiring an 80% stake in an established industrial services provider specializing in high-temperature equipment maintenance, positioning it as a foundational element of a new industrial services platform with strong growth and profitability potential.

Target Company Overview

The target company is a well-established provider of industrial services, specializing in the installation and maintenance of high-temperature equipment, including kilns, incinerators, and furnaces. With over a decade of operational experience, the firm serves critical sectors such as cement, steel, power generation, and waste management—industries characterized by steady demand and limited competition. Operating in a niche market that is heavily regulated, the company benefits from significant barriers to entry and a wide array of recurring maintenance contracts from a diverse customer base.

Having been in continuous operation for more than 15 years, the company boasts a reputation for reliability and safety in high-stakes industrial environments. Its clientele includes major corporate players across Canada, such as cement producers and energy companies, facilitating repeat projects across multiple facilities. The firm generates millions in annual revenue with consistent profitability and possesses relatively low capital requirements. Historically, it has maintained a positive EBITDA for several consecutive years, strengthened by low leverage and high-margin technical services.

Industry Overview in Canada

The industrial services sector in Canada is marked by strong growth potential driven by increasing demand for infrastructure and energy-related services. The maintenance and installation of high-temperature equipment have become cr