Project Heat

Business Overview
An established industrial services provider specializing in the installation and maintenance of high-temperature equipment such as kilns, incinerators, and furnaces. With more than a decade of operational history, the company serves essential sectors including cement, steel, power generation, and waste management—industries with consistent demand and limited supplier competition. Operating in a niche, regulation-driven market, the business benefits from high barriers to entry and recurring maintenance work across a diverse customer base.

Track Record
Operating History: Over 15 years in continuous operation, with a proven reputation for reliability and safety in demanding industrial environments.
Customer Base: Works with major corporate clients across Canada such as cement producers, manufacturers, and energy companies, with repeat projects across multiple plants.
Scale: Generates multi-million-dollar annual revenues with consistent profitability and minimal capital requirements.
Profitability: Historically EBITDA-positive for several consecutive years, supported by low leverage and high-margin technical services.
Leadership Alignment: Founders are retaining a minority interest to ensure continuity, while new management and systems will professionalize operations post-acquisition.

Growth Strategy
Operational Expansion: Hire additional management and project supervisors to increase capacity and reduce dependence on the founders.
Infrastructure Modernization: Implement new reporting, project management, and safety systems to improve efficiency and risk controls.
Geographic Growth: Expand service coverage beyond Southeastern Ontario into new industrial regions to capture recurring maintenance contracts.
Client Diversification: Pursue larger multi-site clients while strengthening relationships with existing partners through improved service tracking and reliability.
Platform Build-Out: Integrate the business into a broader industrial services holding company, creating synergies and cross-selling opportunities across multiple industrial maintenance verticals.

Investment Overview
PE Gate and co-investors are acquiring an 80% ownership stake in this industrial services business. The acquisition represents the foundation of a new industrial services platform under PE Gate Industrial Holdings. The investment targets a base case IRR of roughly 30%, supported by strong recurring demand, high industry barriers to entry, and low competition. Long-term value creation is expected through add-on acquisitions, operational upgrades, and margin expansion.

Investors interested in reviewing the detailed Investment Memorandum and transaction terms can set up an account on the PE Gate platform to access the full document and indicate interest.