Finning sells mobile refueling business in $450M deal

Photo: Finning

Finning International has completed the sale of 4Refuel and Compression Technology Corporation (ComTech) as part of its strategy to simplify operations and focus on core dealership activities.

The company confirmed it has closed the sale of 4Refuel, its mobile on-site liquid refueling business, to affiliates of private equity firm H.I.G. Capital.

The deal, originally announced earlier this year, includes Finning’s subsidiaries 4Refuel Holdings Limited, Midnight Holding, Inc., and their respective affiliates.

The total implied transaction value is approximately $450 million, including a purchase price of up to $400 million and the assumption of around $50 million in leases and other indebtedness.

Under the terms of the deal, Finning received $330 million in cash, with the balance made up of a $50 million note receivable and up to $20 million in contingent consideration based on future performance.

Finning CEO Kevin Parkes thanked the 4Refuel team for their contributions and said the divestment aligns with the company’s strategy to maximise return on invested capital.

“Since we acquired the business in 2019, 4Refuel has generated strong growth and returns for our shareholders, including significant free cash flow,” said Parkes. “This transaction represents another successful example of executing our invested capital improvement plan to unlock more than $450 million of invested capital as outlined at our Investor Day in 2023.”

Finning said proceeds from the transaction will be used to repurchase shares under its normal course issuer bid, pay down its credit facility, and reinvest in its core dealership operations.

Separately, Finning and the other shareholders of natural gas engine and compressor maintenance company ComTech have also completed the previously announced sale of the business to a third party for a total implied value of $40 million, including leases and indebtedness.

The sale follows a strategic review, during which Finning determined that ComTech no longer formed a core part of its operations. The company recorded an impairment loss of $45 million in the first quarter of 2025 related to the divestment.

ComTech, in which Finning held a 54.5% interest, and 4Refuel together generated more than $190 million in net revenue in 2024, with $72 million in EBITDA and $37 million in EBIT.

Parkes added, “These transactions represent another important step in executing our strategy to simplify our business and focus on our core dealership operations, unlocking invested capital, and increasing pro-forma return on invested capital.”