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05/2012

HSE INTEGRATED acquired by DXP ENTERPRISES

CANADA Industrial Services EV 50M - 150M CAD

Context

This cross-border acquisition enables a US-based integrator to expand its continental distribution network by integrating Canada's leading industrial security services platform, which boasts 609 full-time employees and generates approximately $100 million in annual revenue. The acquisition allows DXP to enter the Canadian market without incurring the delays associated with establishing a local presence, while also internalizing a skilled intervention force and a fleet of certified equipment. Post-closure, the operational integration plan involves absorbing the target's activities into the acquirer's specialized division, with the goal of standardizing equipment deployment processes across the entire continental network. By leveraging the on-site presence inherent to surveillance services, the acquirer aims to introduce its maintenance and equipment product catalog to a captive client base, thereby optimizing the profitability of the newly acquired service points. This strategic move is expected to benefit both the acquirer's clients and employees, driving growth and enhancing the company's overall market position.

HSE INTEGRATED, which reported an EBITDA margin of in 2012, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Business Services sector (11.4x).

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Target

HSE Integrated operates as a supplier of industrial safety services and regulatory compliance, specializing in the deployment of qualified personnel and critical equipment rental for high-risk work environments across Canada. The company's operational infrastructure revolves around the integrated provision of gas detection devices, mobile air quality monitoring units, self-contained breathing apparatus, and fire-fighting equipment, coupled with on-site human presence including safety protocol supervision, emergency medical intervention, and industrial hygiene management. Revenue is generated through the billing of recurring services dictated by legal compliance obligations in occupational health and safety imposed on operators of heavy industrial sites, with a focus on supporting clients in maintaining adherence to stringent regulatory requirements, thereby ensuring a stable and predictable income stream through long-term contracts, entering new regions, and expanding its portfolio of specialized services to cater to the evolving needs of its client base, which includes a diverse range of industries such as oil and gas, mining, and construction, with a history of steady growth and development since its inception.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (CAD)

Year
Rev
EBITDA
EBIT
2012
2011

Similar deals in Industrial Services

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
09/2015SPRINGWATER CAPITALIMTECH ESPAÑASPAINMulti-technical Installation
12/2013SOCOTECATSFRANCETIC (Testing, Inspection, Certification)
03/2013PAI PARTNERSIPH GROUPFRANCEIndustrial & Technical Distribution
12/2012COBEPASOCOTECFRANCETIC (Testing, Inspection, Certification)
07/2011IK PARTNERSTRIGOFRANCETIC (Testing, Inspection, Certification)
03/2010HG CAPITALJLAUNITED KINGDOMEquipment Rental
02/2010BRIDGEPOINTLGC GROUPUNITED KINGDOMTIC (Testing, Inspection, Certification)
07/2008QUALIUMSOCOTECFRANCETIC (Testing, Inspection, Certification)
11/2007ASTORGTRESCALFRANCETIC (Testing, Inspection, Certification)
06/2006INVESTCORPIPH GROUPFRANCEIndustrial & Technical Distribution

REFERENCES

Valuation range: EV 50M - 150M CAD

Revenue range: 50M - 100M CAD

EBITDA range: 5M - 25M CAD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of HSE INTEGRATED by DXP ENTERPRISES are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: hse integrated