Private-equity firm H.I.G Capital acquires 4Refuel for up to $300 million

HIG Capital agreed to pay up to 400 million Canadian dollars for mobile fuel-delivery company 4Refuel, the latest deal by the Miami private-equity firm to target businesses that provide essential services to other companies.

The acquisition from Finning International Inc., announced July 1, values 4Refuel at a 54% premium to the C$260 million that the heavy-equipment dealer paid for the company in 2019. The deal underscores investor appetite for so-called business-to-business services companies that generate steady cash flows.

Founded in 1995, 4Refuel operates a fleet of specialized trucks that deliver fuel directly to customers’ equipment at job sites across Canada and Texas. The company serves more than 3,000 customers in sectors including rail transportation, construction and logistics, delivering about one billion liters of fuel annually through 27 locations.

“4Refuel is a scaled, differentiated, technology-enabled platform operating in a mission-critical segment of the energy value chain,” said Matt Kever, a managing director at HIG.

The transaction comes as HIG, which oversees $70 billion in assets, continues an active deal pace. Earlier this week, the firm’s growth-capital arm sold its majority stake in jewelry company The GLD Shop to MarcyPen Capital Partners while retaining a minority position.

Consumer brand delivers returns

HIG Growth Partners’ exit from GLD represents a successful bet on direct-to-consumer brands during a period when many such companies have struggled. The firm invested in the Miami-based jewelry maker in 2021 and helped drive revenue growth of more than 130% over four years.

The company, founded in 2015 by Christian Johnston, sells chains, pendants and watches to a customer base that includes professional athletes such as Kevin Durant and entertainers including Snoop Dogg. GLD secured licensing agreements with major sports leagues including the National Basketball Association and National Football League.

“GLD’s evolution from a digital disruptor to category leader has been part of our aligned vision with Christian and the senior management team since our initial investment,” said Evan Karp, a managing director at HIG Growth Partners.

The partial exit allows HIG to realize gains while maintaining exposure to potential future growth. Such strategies have become common among private-equity firms seeking to balance return generation with portfolio diversification.

Deal activity continues

HIG’s recent transactions reflect the firm’s focus on middle-market companies across diverse sectors. This year, the firm acquired healthcare revenue-cycle company GetixHealth and cloud-services provider Quisitive Technology Solutions. It also completed a merger creating Pellera Technologies, which generated about $4 billion in revenue last year.

The investment pace demonstrates HIG’s ability to deploy capital across economic cycles. Founded in 1993 by Sami Mnaymneh and Tony Tamer, the firm has invested in more than 400 companies, with current portfolio holdings generating combined annual revenue exceeding $53 billion.

Larry Rodo will continue as chief executive of 4Refuel under HIG’s ownership. The company’s services include direct-to-equipment refueling, diesel exhaust fluid delivery and tank monitoring—offerings that provide recurring revenue streams and high customer retention rates.

The 4Refuel acquisition fits HIG’s pattern of investing in companies that serve critical infrastructure needs. Recent deals include pickle manufacturer Patriot Pickle and pharmaceutical compounding service ITH Group in the U.K.

HIG operates through multiple investment strategies including private equity, growth capital, real estate and debt financing. The firm maintains 19 offices globally and focuses on providing both capital and operational expertise to portfolio companies.