Fulcrum Capital invests in carve-out of IST from Aecon Group

Canadian private equity firm Fulcrum Capital Partners has partnered with the management of Innovative Steam Technologies (IST) to complete a carve-out of the business from construction company Aecon Group Inc (TSX: ARE). Fulcrum Capital did not disclose its investment, however, Aecon said the sale generated an initial $35 million in gross cash proceeds. Based in Cambridge, Ontario, IST is a designer, engineer, manufacturer and installer of heat recovery steam generators for power generation and enhanced oil recovery applications. The deal is the third announced so far this year by Fulcrum Capital Partners V LP, which is currently being marketed to raise $300 million.

PRESS RELEASE

Fulcrum Capital Partners Announces Equity Investment in Innovative Steam Technologies

April 2015

Fulcrum Capital Partners has partnered with the management of Innovative Steam Technologies (IST) to complete a carve-out of IST, previously an independent, wholly owned subsidiary of Aecon Group Inc.

IST designs, engineers, manufactures and installs proprietary heat recovery steam generators for power generation and enhanced oil recovery applications. IST has been in operation since 1992 and over the past 23 years has developed a global market reach with a well-established brand and reputation for quality and performance. IST’s customers include multi-nationals, power utilities, independent power producers, major oil & gas producers and EPC firms, and to date IST has sold over 200 units on six continents. IST has over 170 employees and is headquartered in Cambridge, Ontario.

The investment was made by Fulcrum Capital’s Private Equity Fund V. IST marks the third investment in that fund.

Fulcrum Capital Partners manages over C$675 million of capital through three private equity funds and a portfolio of mezzanine investments. Fulcrum Capital’s investments typically support management buyouts, acquisitions, going private transactions, leveraged buyouts, corporate growth, and recapitalizations.

Source: Fulcrum Capital Partners

Photo courtesy of Innovative Steam Technologies