Elevate Service Group acquires Red Lake Plumbing & Heating: price, structure and what it means for plumbing buyers

Elevate Service Group Inc.

acquires

RRed Lake Plumbing & Heating Inc.

Price

$1.3M

Cash at close

$650K

Shares

$300K, 3-yr lock-up

Note

$350K, 3 years

2025 revenue

$3.7M

2025 EBITDA

$0.4M

Published 29 October 2026 · Deal announced 2026-10-28 12:00 UTC · Acquisitions.com Deal Reports

Part of the Plumbing guide: buying, selling, valuation and who is buying.

This report is for anyone who buys, owns or plans to sell a small plumbing and HVAC company. Elevate Service Group, a listed roll-up, agreed terms to buy a remote Ontario trade business. The price and the full payment split are public, which is rare at this size. That makes it a useful model for a first deal.

What did Elevate Service Group buy?

Red Lake Plumbing & Heating is a trade business in Red Lake, a town in Northwestern Ontario. It does plumbing, HVAC and gas fitting. Its customers are commercial, industrial and residential, many of them in remote northern and Indigenous communities.

The company brings over ten licensed technicians, the release says. Its audited 2025 statements show revenue of $3.7 million, EBITDA of $0.4 million and net income before taxes of $0.3 million.

The seller is Métis Infinity Investments, the economic development arm of the Métis Nation of Ontario. It was set up in 2015 and bought Red Lake in 2019. It will become an Elevate shareholder when the deal closes.

Note the status. This is a letter of intent, not a signed purchase agreement. Only the exclusivity, confidentiality and expense terms bind the parties today. The deal still needs due diligence, final documents and approval from the TSX Venture Exchange.

What is Elevate paying, and how?

The total price is $1.3 million. It is paid in three parts.

1. Cash at closing: $650,000. That is half the price.
2. Elevate shares: $300,000. The number of shares is set by a formula before closing. The shares are locked up for three years, with one third released each year.
3. A promissory note: $350,000. It runs three years and ranks behind Elevate's senior secured debt. Interest is 2% in year one, 3% in year two and 4% in year three. Principal and interest are paid at the end.

Two simple ratios come straight from the disclosed figures. The price is about 3.3 times the 2025 EBITDA of $0.4 million. It is about 0.35 times the 2025 revenue of $3.7 million. These are our arithmetic on the release's numbers, not figures Elevate gave. EBITDA rounded to one decimal can hide a real spread, so treat them as rough.

The release gives no advisors and no detail on how Elevate will fund the cash part.

Why does the deal fit Elevate's plan?

Elevate describes itself as a national platform for facilities management and essential commercial services. Its plan is to consolidate a fragmented sector and run profitable trade businesses on shared systems and technology. It says it has over 20 years of experience serving national, blue-chip customers.

Red Lake gives Elevate a permanent base in Northwestern Ontario. Elevate plans two things with it. First, sell its own commercial services, such as electrical, lighting and equipment work, to Red Lake's customers. Second, use Red Lake's technicians to serve Elevate's national customers in that region.

"Red Lake represents the type of strategic acquisition we are pursuing as we build Elevate's national service platform," said Romeo Di Battista Jr., Executive Chairman of Elevate.

That is the classic roll-up logic: buy local crews, then sell more services through them.

What does it mean for a small plumbing buyer or seller?

This deal sits right in the range most first-time buyers look at. Red Lake's revenue is inside the $500K to $50M band where Acquisitions.com clients usually shop. Four lessons carry over.

Only half the price is cash on day one. The other half is shares and a note. A seller who takes paper takes risk: the note is paid only at the end of year three, and it ranks behind the bank. A buyer who can pay in paper needs less cash and keeps the seller tied to the result. A private buyer has no listed shares, so the usual tools are a seller note, an earn-out or rollover equity.

Low interest on the note is a real price cut. A note at 2% to 4%, paid in one lump at the end, is worth less than $350,000 in cash today. Sellers should value the note, not just add it up.

Technicians are the asset. Elevate names the licensed technicians before it names anything else. In plumbing and HVAC, the licensed crew is what a buyer pays for. Check how many hold licences, how long they have stayed, and whether they will stay after the sale.

Remote markets cut both ways. Few rivals can reach a remote town, which protects the price. But hiring there is hard, and losing two technicians can hurt the whole business. Price that risk in your due diligence.

A first-time buyer would usually fund a deal like this with an SBA loan, a seller note and some investor money combined. For prices, buyers and steps in this sector, read our guide to buying or selling a plumbing business. If you plan to buy one, start at /buy. If you own one and want a price, book a free call. Tax and legal terms of any note or share deal need your own lawyer and CPA.

What should you watch next?

Watch the definitive agreement. A non-binding LOI can change. The final terms, the share formula and the closing date will show whether the $1.3 million price holds.

Watch the TSX Venture Exchange approval. The deal cannot close without it.

Watch the cross-selling. Elevate's case rests on selling electrical, lighting and equipment services to Red Lake's customers. Its later results will show whether that works.