@innovativeheatingtech.com
KELOWNA – Decisive Dividend Corporation announced the acquisition of Innovative Heating Technologies Inc. for $15.5 million, from arm’s length parties. Innovative Heating Technologies Inc., located outside of Winnipeg, Manitoba, is a well-established manufacturer and developer of high efficiency heating mats and lighting solutions for hog production.
Decisive has also entered into an agreement with its senior lenders, Canadian Western Bank and CWB Maxium Financial Inc., a wholly owned division of Canadian Western Bank, to increase the Corporation’s overall debt availability from $53 million to $68 million, extend the term of the agreement, and lower its borrowing costs on its increased revolving term acquisition facility by 0.5 per cent.
“With this announcement, in the last 15 months Decisive has acquired six businesses, added over $17 million of Adjusted EBITDA to our portfolio, representing an increase in Adjusted EBITDA per Common Share of 84 per cent on a pro forma basis, all while also increasing our monthly dividend three times during that same period, demonstrating how accretive our acquisition-focused growth and yield strategy is for our shareholders. As we look into the future, we continue to see significant opportunities to continue this trajectory, supporting value creation for all of our stakeholders,” said Jeff Schellenberg, Chief Executive Officer of Decisive.
IHT was founded in 1995 and offers a diverse range of reliable and energy-efficient equipment, with a strong emphasis on research and development of new innovative technologies. The current focus of the business is centered on its Hog Hearth and IL-TEK brands which provide a range of heat mats, lighting products and related equipment for hog producers.
The vendors of IHT, Chris Grant and Matt Robins, have committed to lead IHT for at least the next three years and support succession planning for the leadership of the business thereafter. Both have extensive knowledge of the industry and business with Chris having been with IHT since he and Matt acquired it in 2013 (and serving as a supplier to the business prior to that) while Matt has been with IHT since 1997.
Business Examiner Staff