Diffusion Group Expands Heat Treating Platform with Acquisition of Hi-Tech Steel Treating- “MONTY EXCLUSIVE”

“Hi-Tech has built a strong reputation in the Michigan manufacturing community over many decades. Our responsibility is to protect that legacy, support the team, and invest in the future.” — Tim Thompson, Diffusion Group Saginaw, Michigan – August 2026

The Diffusion Group of Companies has completed its acquisition of Hi-Tech Steel Treating, a long-established commercial heat-treating operation based in Saginaw, Michigan. The acquisition marks another important milestone in the group’s growth strategy and further strengthens its position in the North American heat-treating market.

Founded in 1983, Hi-Tech has become a trusted commercial heat-treating provider for manufacturers throughout Michigan and the surrounding region. The company offers a broad range of thermal-processing services, including annealing, carbonitriding, induction hardening, flame hardening, stress relieving, straightening, steam treating, and other specialized processes. Hi-Tech is ISO 9001:2015 certified and CQI-9 compliant, serving customers across automotive, manufacturing, tooling, heavy equipment, medical, and industrial sectors.

The acquisition reflects Diffusion’s approach of partnering with respected businesses that have strong cultures, skilled employees, loyal customers, and proven operating histories.

“Hi-Tech represents exactly the type of company we want to build alongside,” said Tim Thompson. “It has experienced people, deep customer relationships, and a history of doing challenging work well. We have tremendous respect for what the ownership group and employees have built over the past four decades, and we’re proud to carry that forward.”

Diffusion would like to acknowledge and thank the ownership group of Jim Stone, Kevin Stone, Tom McGrandy, and Chris Muscott for the trust they have placed in the organization. Their discipline and stewardship helped establish Hi-Tech as one of the region’s most respected commercial heat-treatment providers.

Operational continuity remains a priority. Hi-Tech’s employees, leadership team, customer relationships, and day-to-day operations will continue without disruption. The immediate focus is learning from the organization’s experience and identifying practical opportunities to strengthen the business over time.

“We are operators, not passive investors,” Thompson added. “Heat treating is what we do every day. Our role is not to change successful businesses for the sake of change. Our role is to provide support, invest where it makes sense, and help strong teams get even better.”

Looking ahead, Diffusion intends to draw on the group’s collective operating experience to support Hi-Tech’s next stage of growth. The company’s established position in the Michigan manufacturing market, combined with the resources of the broader organization, creates opportunities to improve systems, expand capabilities, and continue delivering value to customers.

Building a North American Heat-Treating Platform

The acquisition of Hi-Tech Steel Treating represents another milestone in Diffusion Group’s strategy of acquiring and developing high-quality thermal-processing businesses. Rather than consolidating facilities or centralizing operations, Diffusion focuses on preserving the strengths of each company while creating value through shared expertise, stronger systems, targeted investment, and leadership development.

Diffusion seeks out companies that have earned customer trust, built strong community roots, and demonstrated a lasting commitment to doing the work well. By bringing experienced operators together under a common ownership structure, the group can provide additional resources while preserving the local identity and culture that made each business successful.

“Our vision is bigger than any single facility,” Thompson added. “There are many exceptional heat-treating businesses across North America that have been built by entrepreneurs and families over generations. We want to partner with owners who care deeply about their employees, customers, and legacy, and provide a home where those values can continue. Hi-Tech is an important step, and we expect it will not be the last chapter in Diffusion’s growth story.”

With operations now spanning British Columbia, Michigan, and New York, Diffusion continues to expand its footprint while maintaining a disciplined focus on technical execution, employee development, and durable value creation. Across the group, Diffusion is positioned better than ever to meet customers’ quality, delivery, and technical-support needs through a broader North American platform of specialized thermal-processing businesses. By combining local operating strength with shared expertise, ongoing investment in cutting-edge technology, stronger systems, and process intelligence, Diffusion can deliver better service, stronger quality control, and more consistent results for customers. Supported by a fleet of trucks capable of covering thousands of miles across regions, the group can respond with the reliability, reach, and delivery performance manufacturers depend on.

About Diffusion; The Diffusion Group is a privately held industrial holding company focused on building a North American platform of heat-treating, metallurgical, and thermal-processing businesses.

With the addition of Hi-Tech Steel Treating, the group's operating companies now include:

Precision Heat Treat (PHT) – Surrey, British Columbia (established 1989). One of Western Canada's leading commercial heat-treating providers, serving aerospace, defense, transportation, manufacturing, tooling, mining, and industrial customers.

Nitrera Technologies – Surrey, British Columbia (established 2012). A specialized provider of nitriding, metallurgical consulting, laboratory testing, process engineering, and advanced surface-treatment technologies.

Rochester Steel Treating Works (RSTW) – Rochester, New York (established 1932). One of the oldest commercial heat-treating operations in the northeastern United States, serving aerospace, defense, medical, automotive, tooling, and industrial customers.

Hi-Tech Steel Treating – Saginaw, Michigan (established 1983). A respected Midwest commercial heat treater offering annealing, carbonitriding, induction hardening, flame hardening, stress relieving, and specialty thermal processing services.

Together, these companies offer heat treating, nitriding, metallurgical services, laboratory analysis, process engineering, quality support, and specialized thermal-processing capabilities across Canada and the United States.

The addition of Hi-Tech expands Diffusion’s presence to facilities in British Columbia, Michigan, and New York, creating a cross-border group capable of supporting customers throughout North America.

The company continues to pursue partnerships with exceptional businesses that share its commitment to quality, reliability, technical excellence, and responsible stewardship.

(This Sale Was Facilitated by "The Monty Heat Treat News")