Vancouver, BC – September 5, 2023 – CAI Capital Partners (“CAI”) is pleased to announce that its portfolio company, LineStar Utility Supply Inc. (“LineStar” or the “Company”), has acquired Western High Voltage Test Centre Inc. (“WHV”). Based in Calgary, Alberta, WHV specializes in testing high voltage live line equipment for electric utilities and powerline contractors in Western Canada.
The partnership enables LineStar to broaden its capabilities to include high-voltage testing which streamlines the procurement process for customers who require both equipment and testing solutions. Existing customers will have a seamless transition as WHV forms the testing division of LineStar and will continue to be led by Daniel Verhelst who has retained a meaningful equity interest in the combined business. LineStar is committed to upholding the high standards of service and quality that WHV is known for, as testing is instrumental to ensuring the safety of those that service critical utility infrastructure.
“We are thrilled to welcome Western High Voltage to the LineStar family,” said Brian L’Heureux, CEO of LineStar. “This partnership immediately brings high-quality testing to our customers in Western Canada, and we are excited to build out testing capabilities across Canada with Daniel’s expertise and support.”
Daniel Verhelst, President of WHV, added, “I have known Brian and LineStar for many years and am excited to join forces with a prominent name in the utility equipment industry. Combining LineStar’s industry-leading products with WHV’s testing expertise empowers us to better serve our valued customers.”
LineStar’s investment in WHV marks its first acquisition and aligns with the Company’s long-term strategy of expanding its utility equipment and service offerings, geographies, and adjacent end markets. LineStar is actively seeking acquisition opportunities in Canada and the United States.
Debt financing for the transaction was provided by Scotiabank. CAI and LineStar were advised on the transaction by Blake, Cassels & Graydon LLP and MNP Transaction Services.
About Western High Voltage Test Centre Inc.
For over 30 years, Western High Voltage has specialized in testing high voltage live line equipment for electric utilities and powerline contractors. Western High Voltage operates out of a 12,000 sq. ft. facility in Calgary, Alberta with remote testing capabilities across Western Canada. For additional information, please visit www.whvtc.ca.
About LineStar Utility Supply Inc.
Founded in 2005, LineStar is a leading distributor of powerline technician tools and safety equipment across Canada with distribution centers in British Columbia, Alberta, Manitoba, Ontario, Quebec, and New Brunswick. LineStar primarily serves electric utilities and powerline contractors and has long-standing relationships and exclusive partnerships with key tool and equipment OEMs. For additional information, please visit www.linestar.ca.
About CAI Capital Partners
CAI Capital Partners is a Vancouver-based private equity firm focused on partnering with and growing founder-owned businesses in the Canadian and US lower middle market. Over three decades, CAI has invested approximately C$1.6 billion of equity capital into companies across North America. For additional information, please visit www.caifunds.com.