The Montréal firm's second Fund II investment backs founders Farhaan Thobani and Badal Davda, with Georges Karam joining as Executive Chairman, and targets 20-plus locations across Canada by FY30, a bet on a market where an aging fleet of cars and trucks is driving record repair demand.
MONTREAL, June 30, 2026 /CNW/ - Canadians are holding onto their vehicles longer than ever, pushing demand for repair and replacement parts to record highs. Against that backdrop, Alfar Capital, a Montréal-based, entrepreneur-led private equity firm, today announced a strategic partnership with 1-800-Radiator & A/C (Canada) ("1-800-Radiator Canada" or the "Company"), the largest multi-unit operator in the 1-800-Radiator network in Canada and one of the largest in North America, to build a national distributor of aftermarket heat exchangers, air conditioning, emissions, and rotating electrical parts for light- and heavy-duty vehicles.
The timing reflects a market in motion. A wave of vehicles sold in the strong 2015–2019 years has now aged into its heaviest repair-and-maintenance years, lifting aftermarket demand across the country.
Completed through Alfar Capital Partners II, L.P. ("Fund II"), the partnership is the firm's second platform investment in nine months. Founded in 2018 by Farhaan Thobani and Badal Davda, 1-800-Radiator Canada operates nine branches across Ontario and Alberta, supported by a central distribution hub in London, Ontario, and serves independent repair shops, body shops, dealerships, and fleet operators. The founders will continue to run the business day to day and are reinvesting a significant share of their own equity into the partnership. Management plans to grow to twenty or more locations across Canada by FY30 by opening new branches and acquiring smaller independent operators.
Georges Karam, who built and sold several Canadian technology and services companies including Atelka and Cognibox, joins as Executive Chairman and will collaborate with the founders day to day to guide the national expansion.
"Alfar understands what we have built and why it works," said Farhaan Thobani and Badal Davda, Co-Owners of 1-800-Radiator Canada. "We have spent the last several years proving out a model that delivers price and availability our competitors can't match. Having a partner that backs the founders to keep running the business, while giving us the capital and structure to open markets faster, is exactly what this next stage needed."
"This is a category with strong fundamentals and a clear path to scale," said Georges Karam, Executive Chairman of 1-800-Radiator Canada. "Farhaan and Badal have built a proven way to open and run successful locations. I look forward to supporting the execution of their ambitious plan."
"Farhaan and Badal have built something most operators in this space have not: a repeatable model for opening and scaling locations," said Fares Kabbani, Founder and Managing Partner at Alfar Capital. "This is a fragmented market with a clear opportunity to bring independents together, and our role is to provide the capital, governance, and acquisition support to help the team build the national platform they have the foundation for."
The investment is consistent with Alfar's platform-building mandate and its focus on partnering with entrepreneurial founders to accelerate growth.
Fasken acted as legal counsel, KPMG LLP as financial and tax due-diligence advisor, and National Bank of Canada acted as lender to Alfar Capital in connection with the transaction. National Bank of Canada acted as financial advisor to the management of 1-800-Radiator Canada.
About 1-800-Radiator & A/C (Canada)
1-800-Radiator Canada is a leading Canadian distributor of aftermarket heat exchangers, A/C, emissions, and electric rotating parts for light- and heavy-duty vehicles, operating within the broader 1-800-Radiator & A/C network and recognized for superior pricing, delivery speed, and inventory depth. The broader 1-800-Radiator network, founded in 1982 and headquartered in Benicia, California, is a Driven Brands portfolio brand with more than 200 locations.
About Alfar Capital
Alfar Capital is a Montréal-based private equity firm for entrepreneurs, focused on control investments in industrial distribution, manufacturing, and services across Canada. Through Alfar Capital Partners II, L.P., the firm partners with founders and management teams to accelerate growth through operational support, governance, and acquisitions.
SOURCE Alfar Capital
For more information: Fares Kabbani - Alfar Capital
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