Finning buys 4Refuel

Finning Canada
December 28, 2018
By Finning Canada
Finning International Inc. has announced it has reached an agreement to acquire 100 percent of 4Refuel Canada and 4Refuel US (“4Refuel”) for approximately $260 million. In 2018, 4Refuel is expected to generate net revenue(3) of approximately $110 million and EBITDA of $33.5 million. Greater than 95 percent of 4Refuel’s profitability is generated in Canada.

4Refuel pioneered mobile on-site refueling and has built an unmatched market presence across Canada, employing about 600 people and serving over 3,400 customers. 

As a fuel management business, service is at the core of 4Refuel’s expertise. The company refuels customer equipment directly on site, mostly during off hours when equipment is idle. This ensures physical availability of customers’ equipment, while maximizing productivity of their operations. Customers benefit from 4Refuel’s Fuel Management Online System, which allows customers to optimize on-site refueling to save time and money. 4Refuel’s approach combined with Finning’s connected asset network will generate new insights into how to better support customer needs.

“This transaction is a great example of a Caterpillar complementary bolt-on acquisition that accelerates our customer-centric growth strategy. 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.

Meaningful synergies are expected to be generated through the acquisition. Approximately 50 percent 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. Furthermore, 4Refuel will have the opportunity to sell more fuel services to Finning’s 18,000 plus customers enabled, in large part, by connectivity. Finally, the overlapping geographies and supply chains present opportunities to gain efficiencies, optimize routes and improve customer service.

The transaction is subject to customary regulatory approvals and is expected to close early in 2019.

Finning Canada

Add comment

All comments are vetted by Canadian Rental Service editorial staff before posting. Comments soliciting business or promoting specific products or services will not be posted. Defamatory or abusive language will result in banning from the site.


Security code
Refresh

We are using cookies to give you the best experience on our website. By continuing to use the site, you agree to the use of cookies. To find out more, read our Privacy Policy.