Tioga Air Heaters

Retiring CEO prompts search for strategic acquiror.

Tioga Air Heaters has been acquired by Mangrove Equity Partners and Hunter Equity Capital

Founded in 1961 and based in New Hope, Minnesota, Tioga Air Heaters designs, manufactures, sells, and rents industrial temporary heaters for energy, mining, power plants, commercial construction, and industrial markets.

Situation Overview

Co-owner and CEO Bruce Wallace was looking for an experienced partner to facilitate his retirement and to ensure the longevity and future success of Tioga.

You were relentless in finding us the best deal possible! Thank you for everything you did for us. – Bruce Wallace, Owner & CEO, Tioga Air Heaters

M&A Transaction Process

Vermillion worked closely with Tioga for several months to prepare the Company for sale before going to market. Vermillion advised Tioga on several strategic initiatives including:

  • Advised Tioga on analyzing its financials to identify add-backs to EBITDA to ensure the owners were getting full credit with respect to valuation from buyers.
  • Advised the Company’s management team on highly critical meetings with buyers and ensured they were prepared for all areas that buyers would be focused on.


Through a broad marketing process, Vermillion spoke with over 80 prospective buyers and secured 11 first round bids. Tioga Air Heaters was sold to Mangrove Equity Partners at a 7% premium to the next highest bidder.

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