FirePower Capital Caps Record-Breaking Year With Sale of Canadian Applied Comfort Products Inc. to UK-based Manufacturer Carver Group
FirePower Capital Corp. (“FirePower”), Canada’s entrepreneurial investment bank and investor, is pleased to announce it advised on the sale of Applied Comfort Products Inc. (“Applied Comfort”), a Canadian manufacturer of packaged terminal air conditioners, to Carver Group, a UK-based manufacturer of building ventilation, air heating and cooling systems. FirePower acted as exclusive advisor to Applied Comfort. The acquisition, which was completed in December 2016, capped a record-breaking year for FirePower’s investment banking division.
Applied Comfort was seeking a strategic partner that had the expertise and resources to help undertake the next phase of growth, could utilize its Canadian footprint, and capitalize on the outstanding reputation it had built. Carver Group’s acquisition rationale included strengthening its product portfolio and gaining new sales channels into the North American market. FirePower successfully guided Applied Comfort through the transaction, without disruption to its operations, customers, suppliers or employees.
“The team at Applied Comfort have done a great job of advancing the company organically for the past 10 years. We have done very well, but I knew a strategic partner could provide additional assets that we could leverage for greater success. Picking the right partner, with the right transaction structure and at the right price for shareholders, isn’t easy,” said Gord Riddle, CEO of Applied Comfort. “FirePower presented attractive strategic options to us; the team scoured the globe for potential buyers and brought them to the table looking to conclude a win-win transaction for all parties. The scope and quality of the outreach impressed us greatly.”
“This was a highly strategic fit for our client,” stated Ilan Jacobson, Founding Partner & CEO of FirePower. “Carver Group has extensive, global relationships and will be instrumental in extending Applied Comfort’s reach and scope.”
This transaction highlights FirePower’s cross-border transactional expertise. Selling a Canadian company to foreign buyers is more complicated, but is increasingly common and thus needs to be planned for in any sale process. Technology makes exposing a deal to global buyers easier than ever, but doing so intelligently is still difficult, time-consuming and complex. Combined with FirePower’s strong network of relationships with buyers and intermediaries around the world, it ensures its sell-side clients find an optimal and strategic fit. In Applied Comfort’s case, of the 140 buyers FirePower approached, just 36 were Canadian.
“We are proud to have found a unique match between these two firms,” said Majed Masad, Partner and Head of Investment Banking. “Of course, every deal comes with its complications, and I’m happy we got this one across the finish line. Together, Carver Group and Applied Comfort have the potential to become a powerful industry player, and I’m looking forward to seeing them succeed.”
FirePower advises and invests in Canada’s entrepreneurs, helping them complete mission-critical transactions, such as acquiring a competitor, selling to a strategic buyer, or financing their growth with our own or our partners’ capital. Our mission is to be the first resource business owners think of in the most important of times. We get it: we too are entrepreneurs, reimagining the way deals get done in Canada since 2012. For more information visit: www.firepowercapital.com
CSR Cosmetic Solutions
The owner of CSR had taken over the business out of bankruptcy. After successfully building it into one of the largest cosmetic contract manufacturers in North America, he was ready for a well-deserved retirement. A previous sale attempt (by a top-tier accounting firm) was unsuccessful in 2015.