Core Points - Finning International Inc. has entered into a definitive agreement to sell 100% of its mobile on-site refueling business, 4Refuel, to H.I.G. Capital for a total purchase price of up to $400 million, with an implied transaction value of approximately $450 million including leases and other indebtedness [1][5] - 4Refuel is a leading North American mobile on-site liquid refueling company with approximately 650 employees, serving various critical industries [2] - The decision to sell 4Refuel was made after careful consideration of the company's strategic direction and return on invested capital objectives, with the belief that H.I.G. will support 4Refuel's long-term growth [3][4] - Since its acquisition in 2019, 4Refuel has generated strong growth and significant free cash flow, contributing to Finning's capital improvement plan [4] - The transaction will simplify Finning's operations, allowing a focus on maximizing product support, improving earnings resilience by lowering SG&A, and creating sustainable growth around core dealership operations [4] - Finning will receive approximately $400 million in consideration, with $330 million payable in cash upon closing, and the purchaser will assume lease liabilities and other indebtedness of about $50 million [5] - The net proceeds from the transaction are expected to be used for share repurchases, paying down credit facilities, and reinvesting in core dealership operations, with an expectation that the transaction will be accretive to earnings per share [6] - The transaction has been approved by Finning's Board of Directors and is anticipated to close in the third quarter of 2025, subject to customary closing conditions [7] - Separately, Finning has also agreed to sell its interest in Compression Technology Corporation (ComTech) for a total implied transaction value of $40 million, with closing expected in the second quarter of 2025 [8] - In the year ended December 31, 2024, 4Refuel and ComTech generated over $190 million in net revenue, incurred $85 million in SG&A, and generated $72 million in EBITDA and $37 million in EBIT [9]