Orion Energy provides $75 mln to FES

Future Energy Solutions, a provider of energy efficient lighting infrastructure, has secured $75 million in financing. The backer was Orion Energy Partners. PricewaterhouseCoopers Corporate Finance LLC and BDO LLP provided financial advice to FES on the transaction.


FORT LAUDERDALE, Fla.–(BUSINESS WIRE)–Future Energy Solutions Lighting Group, LLLP (“FES” or the “Company”) announced today that it has closed a strategic financial partnership with Orion Energy Partners, LP (together with its affiliated funds, “Orion Energy”). The $75 million credit facility from Orion Energy will supplement FES’s existing financial backing from UK-based Matterhorn Capital and Stonegate Bank, providing additional capital to support the Company’s expansion program. FES delivers Lighting as a Service (“LaaS”) through energy efficient infrastructure installations across the United States.

FES is an award-winning business and a rapidly growing provider of energy efficient lighting infrastructure. FES has a proven record of providing commercial and industrial customers with energy efficient lighting equipment systems using LED and induction technologies. The Company’s Gold Initiative Program offers LaaS at zero capital cost to the customer. Orion Energy provides creative capital solutions to middle market energy infrastructure businesses across North America and select international markets.

“FES is delighted to partner with Orion Energy, which has provided a credit facility that will allow us to significantly expand our presence in markets throughout the United States,” said FES Chief Executive Officer Daniel Gold. “With this partnership in place, we are optimally positioned to better service our existing customers and accelerate growth in core target markets.”

“Orion Energy is thrilled to announce a new partnership with Future Energy Solutions. FES has demonstrated its leadership position in the energy efficient lighting infrastructure sector through state of the art product designs and thoughtful structures that enable its customers to save millions of dollars in energy and maintenance expenses. This transaction will allow FES to build on its recent successes by providing capital to continue to grow and evolve the business,” said Chris Leary, Senior Vice President of Orion Energy.

“This investment is a great example of Orion Energy’s ability to combine energy industry knowledge and creative capital solutions for our partners to help support their business goals,” added Gerrit Nicholas, Managing Partner of Orion Energy. “We are also pleased to diversify our portfolio through this investment into the fast-growing sub-sector of energy efficient infrastructure using a LaaS model.”
Mayer Brown LLP acted as legal advisor and PricewaterhouseCoopers Corporate Finance LLC and BDO LLP acted as financial advisors to FES. Latham & Watkins LLP acted as legal advisor to Orion Energy.

About Future Energy Solutions
Future Energy Solutions is an award winning privately owned business that provides energy efficient infrastructure upgrades to businesses and other organizations under a unique plan at no capital cost to the customer. FES has experienced extraordinary growth due to wide acceptance of its Gold Initiative Program. The Program is based on providing turnkey energy efficient lighting infrastructure from design, supply, installation and funding. In addition, FES assumes all maintenance responsibilities for customers who partner with the Company throughout the term of the Program.

The Company specializes in targeting customers currently operating inefficient high intensity discharge (“HID”), high pressure sodium (“HPS”) and fluorescent lighting systems in which lighting forms an essential part of the businesses’ operations and cost base. For more information, visit www.feslighting.com.

About Orion Energy Partners
Orion Energy Partners is a credit-oriented private equity firm focused on providing creative capital solutions to middle market energy infrastructure businesses across North America and select international markets with a focus in the midstream, conventional electric power, renewable energy and storage, downstream, asset-heavy energy services, and upstream sectors. Its management has substantial experience leading successful energy companies and energy infrastructure investments. For more information, visit www.OrionEnergyPartners.com.