Firethorn Capital Partners LP, the latest fund of Canadian private equity firm CAI Capital Management, has acquired Canadian Heating Products Inc and Montigo Del Ray Corp (CHP). No financial terms were disclosed. Langley, B.C.-based CHP is a manufacturer of residential and commercial gas fireplaces that are marketed and sold under the Montigo brand name. Firethorn bought the interest from CHP’s Founder and President Dan Binzer, and plans to support the company in its pursuit of growth opportunities in North America. CHP is Firethorn’s second investment since the fund’s launch in late 2015. It previously invested in White House Design.
Firethorn Capital Partners L.P. Announces Investment in Canadian Heating Products Inc.
Vancouver, BC – July 6, 2016 – CAI Capital Management Co. (“CAI”) is pleased to announce that its latest fund, Firethorn Capital Partners, L.P. (“Firethorn”) has acquired Langley, BC-based Canadian Heating Products Inc. and Montigo Del Ray Corp. (combined, “CHP” or the “Company”). CHP is a niche manufacturer of residential and commercial gas fireplaces that are marketed and sold under the Montigo brand name. The Company’s product offering includes gas fireplaces for the residential market as well as highly-customized linear gas fireplaces for the residential and commercial markets.
Firethorn acquired its interest in CHP from the Company’s founder and President, Dan Binzer. Dan will continue to remain involved in the business predominantly focused on product design. Curtis Johansson, Partner of Firethorn said, “Dan has built an impressive business that makes a very high quality product. We are excited for the opportunity to work with him and the CHP team to continue the growth of the business across North America”.
In conjunction with the closing the transaction, Jonathan Burke has joined CHP as President and CEO. Jonathan brings a track record of successfully growing middle-market businesses and has direct experience in the natural gas products sector. “Bringing Jonathan on board will facilitate a transition of leadership at the Company and his past experience and understanding of the natural gas products business will position the Company to capitalize on a number of available growth opportunities,” continued Mr. Johansson.
Firethorn’s investment in CHP marks the fund’s second investment in the past year and fits with Firethorn’s strategy of partnering with and investing in founder-owned businesses in the North American lower middle market.
About Canadian Heating Products Inc.
Founded in 1976, CHP designs and manufactures residential and commercial gas fireplaces. The Company’s product offering includes gas fireplaces for the residential market as well as highly-customized linear gas fireplaces for the residential and commercial markets. For additional information, visit www.montigo.com.
About CAI Capital Management Co. and Firethorn Capital Partners, L.P.
CAI Capital Management Co. (“CAI”) is a leading private equity firm focused on investing in lower middle-market businesses in North America. With offices in Vancouver and New York, CAI is uniquely positioned to assist founders and businesses in both Canada and the United States. CAI’s broad operational and financial expertise and ready access to capital position the firm as a valued partner for proven, motivated management teams. CAI has invested or placed with co-investors over $1.4 billion in equity or equity-related investments to help fund growth and corporate transition in companies throughout North America.
Firethorn Capital Partners L.P. (“Firethorn”) is the first in a series of CAI funds serving accredited individual investors, family offices, and smaller institutional investors in Canada and the United States. For additional information, please visit www.caifunds.com.
Photo courtesy of Canadian Heating Products Inc