PE Gate and co-investors acquire an 80% stake in an established industrial services provider specializing in high-temperature equipment maintenance, targeting significant returns through operational enhancements and market expansion.

Overview of the Target

The target company is a well-established industrial services provider that specializes in the installation and maintenance of high-temperature equipment such as kilns, incinerators, and furnaces. With over a decade of operational history, it serves critical sectors including cement, steel, power generation, and waste management, which are characterized by consistent demand and limited competition from other suppliers. The company operates in a niche and regulation-driven market that presents high barriers to entry, allowing it to benefit from recurring maintenance work across a diverse customer base.

With more than 15 years of continuous operation, the company has built a solid reputation for reliability and operational safety in demanding industrial environments. Its customer base comprises significant corporate clients across Canada, including cement producers and energy companies, resulting in repeat projects from multiple plants. The company achieves multi-million-dollar annual revenues while maintaining consistent profitability with minimal capital requirements, supported by a history of positive EBITDA and low leverage.

Industry Overview in Canada

The industrial services sector in Canada is experiencing robust growth, driven by ongoing infrastructure development and increasing demand for maintenance services in key industries. Growth in the cement and steel industries is particularly notable, as they are vital to