Private-equity firm continues industrial services push with purchase of mobile refueling business from Finning International
H.I.G. Capital is fueling its industrial services portfolio with an agreement to acquire 4Refuel, a North American mobile refueling company, for up to C$400 million from heavy equipment dealer Finning International.
The Miami-based private-equity firm said the transaction, which includes assumed leases and other indebtedness of about C$50 million, represents a significant markup from the C$260 million that Finning paid for 4Refuel in 2019. The deal is expected to close in the third quarter.
4Refuel, headquartered in Oakville, Ontario, operates a fleet of specialized vehicles that deliver fuel directly to construction equipment, commercial trucks, and industrial machinery at job sites and terminals across North America. The service eliminates the need for companies to transport equipment to fueling stations or maintain on-site fuel storage.
The company employs about 650 people and serves customers in transportation, construction, waste management, and food and beverage industries, among others. H.I.G. is acquiring 4Refuel at a time when construction activity remains robust across North America despite higher interest rates.
Under the deal terms, H.I.G. will pay C$330 million in cash at closing, including a C$50 million note receivable. An additional C$20 million could be paid over two years if certain financial targets are met.
The acquisition adds to H.I.G.’s growing portfolio of industrial services businesses and continues a brisk pace of dealmaking for the firm, which manages $69 billion across private equity, credit, real estate, and infrastructure strategies.
Last month, H.I.G. completed one of its most significant technology investments, merging Converge Technology Solutions with portfolio company Mainline Information Systems to form Pellera Technologies, a $4 billion IT services provider. The newly formed company specializes in cybersecurity, cloud infrastructure, and artificial intelligence implementations for enterprise clients.
The firm has been particularly active in healthcare services. In April, H.I.G. announced a strategic investment in GetixHealth, a provider of revenue cycle management solutions to healthcare institutions based in Sugar Land, Texas. That deal followed February’s sale of Soleo Health, a specialty pharmacy and infusion services provider with 26 pharmacies nationwide, to funds managed by Court Square Capital and WindRose Health Investors.
H.I.G. has simultaneously expanded its European presence through multiple investments. In February, the firm agreed to take a strategic stake in HELLER Group, a German machine tool manufacturer with over 2,600 employees worldwide. The investment aims to support a transformation program initiated by HELLER’s management two years ago.
The firm’s real estate arm has been equally active, acquiring logistics properties in France, an innovation campus in Cambridge, U.K., and taking controlling stakes in a European private school operator and a German residential property developer focused on Berlin.
Founded in 1993, H.I.G. has invested in more than 400 companies globally. Its current portfolio includes over 100 companies with combined sales exceeding $53 billion.
Written in partnership with Tom White
