Kontrol Technologies Increases Its Solutions for the Multi-Residential Building Sector and Enters into Non-Binding Letter of Intent to Acquire HVAC Service Business

Executive Summary

• Kontrol Technologies Corp. has entered into a non‑binding LOI to acquire an Ontario‑based HVAC service business (“Target”).
• Target generates ~ $3 million of annual revenue with a normalized EBITDA margin of ~12%; proposed purchase price is $1.2 million (including $400 k working capital).
• The acquisition is intended to expand Kontrol’s commercial services and create synergies in the multi‑residential building market, though completion remains subject to due diligence, definitive agreement, and regulatory approvals.

Key Details

• Target Business: Ontario HVAC service company; annual revenue ≈ $3 M; EBITDA margin ≈ 12%.
• Purchase Price: $1.2 M total consideration (includes ~$400 k working capital).
• Deal Structure: Non‑binding Letter of Intent; no obligation to close; subject to customary conditions (due diligence, definitive purchase agreement, regulatory approvals).
• Strategic Rationale: Enhances Kontrol’s capability to provide heating and cooling retrofits, preventative maintenance agreements, and commercial services in the aging multi‑residential building stock of Ontario.
• Market Context: Ontario’s rental apartment inventory (~707,853 units in 2024) is largely pre‑1980 construction (≈87% in GTA), driving demand for HVAC modernization.
• Management Commentary: CEO Paul Ghezzi emphasizes focus on acquisitions that deliver immediate revenue and long‑term synergies while reducing exposure to supply chain and inflation risks.
• Historical Acquisition Activity: In the past 14 months, Kontrol signed two LOIs that did not proceed due to unsatisfactory due diligence findings; the company remains disciplined in its acquisition approach.

Notable Quotes

“We remain focused on identifying and completing acquisitions that bring immediate revenue and long‑term synergy potential to the Company in the HVAC service and solutions industry,” – Paul Ghezzi, CEO

All forward‑looking statements are subject to risks and uncertainties detailed in the release.