Elevate Service Group Announces Acquisition of Think Green Solutions, Establishing National Lighting Platform

Executive Summary

• Elevate Service Group Inc. announced a proposed acquisition of Think Green Solutions Inc., valued at $5.15 million, to create a national lighting vertical and enhance margin profile.
• The transaction is structured with cash, deferred payments, common shares (≈909,100 shares subject to a two‑year lock‑up), and a three‑year promissory note bearing 2%/3%/4% interest.
• Elevate also hired Luke Einwechter as Vice President of Operations and Integration, granting him 30,000 stock options at $1.50 exercise price.

Key Details

• Target: Think Green Solutions Inc., a provider of premium LED lighting solutions and services in Canada & the U.S.
• Historical Financials (2024‑2025): Average revenue ≈ $6.3 M; EBITDA margins 22‑24%.
• Strategic Rationale:
• Adds high‑margin lighting vertical (EBITDA > 20%).
• Expands cross‑selling opportunities with Elevate’s national multi‑site customers.
• Enables internalization of electrical installation work, improving project margins.
• Strengthens overall vertical integration of product sourcing, distribution, installation, and maintenance.
• Transaction Structure:
• Total purchase price: $5,150,000
  • Cash consideration: $1,350,000
  • Deferred cash payments: $600,000 (terms not detailed)
  • Common shares: $1,450,000 (≈909,100 Elevate common shares, two‑year lock‑up)
  • Promissory note: $1,750,000, three‑year term with interest at 2% year 1, 3% year 2, 4% year 3.
• Closing Conditions: Subject to customary closing conditions, definitive documentation, and TSX Venture Exchange approval; expected completion in March 2026.
• Leadership Continuity: Founders/owners of Think Green will enter new employment agreements with Elevate and retain operational and sales responsibilities, plus additional duties across Elevate.
• Executive Hire: Luke Einwechter appointed Vice President of Operations and Integration.
• Background: Former owner of Einwechter Plumbing & Heating (Ontario). Licensed plumber/gas fitter.
• Compensation: 30,000 stock options at $1.50 exercise price, five‑year term; 50% vesting after year 3, remaining 50% after year 4.
• Management Comments:
• CEO Paul Bissett highlighted the acquisition as “margin‑enhancing” and a catalyst for revenue growth and operating leverage.
• Chairman Romeo Di Battista Jr. emphasized strategic fit and scalability of the combined platform.

Notable Quotes

“Think Green represents a strategically aligned, margin‑enhancing addition to our platform… supporting both revenue growth and operating leverage as we continue scaling Elevate's integrated service model.” – Paul Bissett, CEO

“Think Green is an ideal fit within our long‑term strategy of building a dominant, vertically‑integrated national service provider.” – Romeo Di Battista Jr., Chairman