PE Gate is acquiring a profitable HVAC distribution business in Ontario, focusing on energy-efficient solutions and poised for significant growth.

Target Information

The target of this acquisition is a well-established engineering-focused distributor in the HVAC sector, catering to the increasing demand for energy-efficient heating, cooling, and snow-melt systems in Ontario. With over thirty years of operational experience, this company has built a strong reputation among engineers and contractors by offering high-quality, complete hydronic solutions. Its solid positioning within a resilient and expanding industry, which is supported by population growth and active decarbonization initiatives, signifies both stability and significant growth potential.

Throughout its history, the business has maintained uninterrupted operations and fostered trusted relationships with both suppliers and clients. It has a diverse customer base, serving hundreds of repeat clients across residential, commercial, and institutional sectors, without any single client representing a material concentration. The company generates multi-million-dollar revenues annually and has shown steady growth, largely backed by recurring projects and a solid order backlog. Furthermore, it has demonstrated a track record of profitability with consistent cash generation and a low capital intensity.

Industry Overview in Ontario

The HVAC industry in Ontario is currently undergoing significant transformation, driven by stricter energy efficiency standards and growing environmental consciousness. As consumers and businesses increasingly prioritize sustainability, the demand for