An Ontario manufacturer, installer and servicer of waste and recycling infrastructure for multi-unit residential buildings —garbage and recycling chutes, chute-fed multi-stream sorting systems, compactors, containers and odor control.
The company is engaged at the design stage through waste reports and drawing reviews, manufactures the equipment in its own facility, installs during construction, and then services the building for the life of the asset. Roughly 95% of new installations convert into preventative maintenance agreements at handover, which renew automatically. Those inspections, in turn, generate fire code and safety remediation work that converts to orders within days.
Revenue splits evenly between the construction channel — developers, general contractors, architects and engineers — and the existing-building channel of condominium corporations, rental portfolios, non-profit housing and long-term care operators, reached through property management. Approximately 750 buildings have been serviced in the last 24 months, with a large portion under maintenance contracts.
Investment Highlights:
- Approximately $3.0M of contracted revenue ahead, with the majority of the backlog scheduled for installation in the coming fiscal year.
- Auto-renewing maintenance agreements, plus service work on competitor-installed equipment.
Proprietary sorting systems and registered trademarks; equipment manufactured in-house.
- Non-discretionary demand driven by fire code, safety and municipal diversion requirements.
- Owner-independent: a general manager and operations manager already run daily operations.
- Debt-free, with a strong cash position and effectively no bad-debt history across decades in the sector.
Growth Opportunities:
- No outbound sales function has ever existed.
- Retrofit of aging single-chute building stock to multi-stream sorting, driven by regulation.
- Out-of-province service partner network set for growth.
- Extend into commercial, institutional, and mixed-use segments that the company has not pursued.
Financial Performance:
The numbers outlined are 3-year averages. Gross profit margin is consistently in the mid-to-high 30s.
