Finning International Inc. has reached an agreement to acquire 100 per cent of 4Refuel Canada and 4Refuel US for approximately $260 million.
4Refuel is the leading mobile on-site refueling company in Canada, supporting customers in the construction, transportation, oil & gas, power generation and other industrial sectors. It has built a market presence across Canada, employing about 600 people and serving over 3,400 customers. More than 95 per cent of 4Refuel’s profitability is generated in Canada with the company expected to post revenue of $110 million in 2018.
“With this investment we will provide new and existing customers with additional services to improve productivity and decrease their total cost of equipment ownership,” said Scott Thomson, president and CEO of Finning.
4Refuel provides direct-to-equipment fueling, typically during off hours when equipment is sitting idle. This ensures physical availability of customers’ equipment, while maximizing productivity of their operations.
Approximately 50 per cent of 4Refuel’s customers are based in western Canada. By combining forces, Finning will have the opportunity to sell equipment, product support, rental and more value-added services to a customer base that is currently not taking advantage of Finning’s full suite of services.
The transaction is subject to customary regulatory approvals and is expected to close early in 2019.