US investment firm HIG Capital buys Canadian fuel company in $300m deal

Private equity giant also sells stake in celebrity jewelry brand

American investment firm HIG Capital has purchased Canadian mobile fuel delivery company 4Refuel for up to C$400m ($300m; £235m), as the Miami-based group continues its expansion into essential services businesses.

The deal, completed on 1 July, sees HIG acquire 4Refuel from Finning International, which originally bought the company in 2019 for C$260m.

4Refuel delivers fuel directly to customers’ equipment and vehicles across Canada, serving more than 3,000 businesses in industries including transport, construction and logistics. The company handles approximately one billion litres of fuel each year through its network of 27 locations.

The acquisition comes as HIG Capital, which manages $70bn (£55bn) in investments worldwide, seeks to build a portfolio of companies providing essential services that remain in demand during economic downturns.

Celebrity jewelry exit

Separately, HIG has sold its majority stake in The GLD Shop, a Miami-based jewelry company popular with celebrities and sports stars, to fellow investment firm MarcyPen Capital Partners.

The GLD Shop, founded in 2015, makes chains, pendants and watches worn by basketball player Kevin Durant and rapper Snoop Dogg. The company has licensing deals with major US sports leagues including the NBA and NFL.

HIG bought into the business in 2021 and helped grow its revenue by more than 130% over four years. The firm will keep a minority stake in the company.

“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.

Business strategy

The contrasting deals highlight HIG Capital’s strategy of investing across different sectors, from stable industrial businesses to fast-growing consumer brands.

Founded in 1993 by Sami Mnaymneh and Tony Tamer, HIG has invested in more than 400 companies worldwide. Its current portfolio includes businesses generating combined annual sales of more than $53bn.

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

The Canadian company will continue to be run by chief executive Larry Rodo, who has led the business as it expanded from its base near Toronto into the US state of Texas.

Recent activity

HIG has been active in dealmaking this year, purchasing healthcare company GetixHealth and technology firm Quisitive. The firm also merged two IT services companies to create Pellera Technologies, which generated approximately $4bn in revenue last year.

Earlier this year, HIG bought US pickle manufacturer Patriot Pickle and helped the company open a new production facility in Texas that more than tripled its manufacturing capacity.

The investment firm operates from 19 offices across North America, Europe, Latin America, the Middle East and Asia, focusing on middle-market companies that can benefit from additional capital and management expertise.

HIG specialises in private equity, growth capital, real estate and debt financing, targeting businesses with established operations and growth potential.