Innovative Steam Technologies (IST) designs, engineers, manufactures and installs heat recovery steam generators that are used in power generation and oil recovery applications. IST’s customers include multi-nationals; power utilities; independent power producers; oil and gas producers; and engineering, procurement and construction (EPC) companies. IST was founded in 1992 and has approximately 170 employees. The company is headquartered in Cambridge, ON (www.otsg.com).
Fulcrum Capital Partners manages over C$675 million of capital and invests both equity and subordinated debt in companies with revenues of C$10 million to C$250 million. Sectors of interest include services, manufacturing, consumer products, distribution, food and retail. Fulcrum Capital Partners was formed in 2011 as the successor to HSBC Capital (Canada) Inc. when current management acquired the private equity and mezzanine business of HSBC Bank Canada. The majority of Fulcrum’s eight partners have worked together for over a decade. During this period at Fulcrum and its predecessor firm, the partners have invested in 38 companies and realized 24 exits, generating a gross return on cash invested of 3.3x and a gross IRR of 28.7%. Fulcrum has offices in Vancouver and Toronto (www.fulcrumcapital.ca).
Innovative Steam Technologies represents Fulcrum’s third platform company for its fifth’s fund, Fulcrum Capital Partners V LP, which had a first close in December 2014 at C$180 million. Fulcrum expects to have a final close at or around the target of C$300 million in the first half of 2015. The two other platform companies in Fund V include GI Group, a Montreal-based manufacturer and distributor of paintballs, markers and other paintball products acquired in January 2015; and JNM Group, a Windsor-based manufacturer of tooling and stamped metal components and assemblies used in the automotive industry acquired in February 2015.
Aecon Group (TSE: ARE), the seller of Innovative Steam Technologies, is Canada’s largest publicly traded construction company and serves the infrastructure, energy, and mining sectors. The company was founded in 1877 and is headquartered in Toronto (www.aecon.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 4-17-15