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Fri September 24 2021

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Finning buys on-site refuelling business

12 Dec 18 Finning has announced plans to buy a Canadian business that carries out on-site refuelling of plant.

The company, 4Refuel, provides round-the-clock coverage to customers in the construction, transportation, oil & gas, power generation and other industrial sectors. It employs about 600 people and serves over 3,400 customers.

The purchase price is approximately CA$260m (£155m). In 2018, 4Refuel is expected to generate net revenue of approximately CA$110m and earnings before interest, tax, depreciation and amortisation (EBITDA) of CA$33.5m.

Finning said that the acquisition is expected to generate synergies with opportunities to expand the products and services that it offers to 4Refuel’s customers and grow the mobile on-site refuelling business through Finning’s customer network.

The company refuels customer equipment directly on site, mostly during off hours when equipment is idle.

“This transaction is a great example of a Caterpillar complementary bolt-on acquisition that accelerates our customer-centric growth strategy,” said Scott Thomson, president and CEO of Finning. “With this investment we will provide new and existing customers with additional services to improve productivity and decrease their total cost of equipment ownership.”

By combining forces, Finning said that it will have the opportunity to sell equipment, product support, rental and more value-added services to a customer base that is currently not using its suite of services. Furthermore, 4Refuel will have the opportunity to sell more fuel services to Finning’s 18,000-plus customers. In addition, the overlapping geographies and supply chains present opportunities to gain efficiencies, optimise routes and improve customer service, said Finning.

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

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