ORIX Mezzanine & Private Equity backs Onward Capital’s acquisition of FSC Lighting

ORIX Mezzanine & Private Equity has made an equity investment to support Onward Capital‘s acquisition of FSC Lighting, a maker of LED lighting for commercial, industrial and retail customers. No financial terms were disclosed. Tecum Capital led the mezzanine debt financing on the transaction while TCF Capital Funding provided senior debt financing.


DALLAS–(BUSINESS WIRE)–ORIX Mezzanine & Private Equity, a business unit of ORIX Corporation USA, announced today that it has made an equity investment in partnership with Chicago-based private equity investor Onward Capital to facilitate the acquisition of FSC Lighting (FSC). ORIX Mezzanine & Private Equity is a leading equity capital partner for independent sponsors throughout North America.

“We are pleased to invest equity alongside Onward Capital in the acquisition of FSC, a manufacturer of energy-efficient LED lighting solutions,” said Jeff Sangalis, head of ORIX Mezzanine & Private Equity. “Since our formation in 2012, 28 of our 36 platform investments have been with independent sponsors. We rely on sophisticated partners like Onward Capital, which has extensive experience investing in and growing lower middle-market manufacturing and value-added distribution businesses, to manage the investments in which we provide equity.”

Laura Lester, partner at Onward Capital, said, “ORIX’s flexible equity capital and junior debt solution allowed us to complete the transaction smoothly. FSC’s reputation for innovative lighting solutions and outstanding customer service is unparalleled, and we look forward to working with the management team to enter new market segments, develop new products and build upon the company’s success.”

FSC makes and assembles customized, energy-efficient lighting solutions for industrial, commercial and retail clients across the country. FSC’s continued success stems from its mission: “go beyond efficiency.” For clients, this means providing comprehensive product support, fast and cost-efficient customization, advanced controls and innovative, application-specific lighting solutions. For employees and the community at large, going beyond efficiency means building a supportive, stable and empowering work environment. One example: the company’s “Made With Care” program, which integrates developmentally disabled adults into the workforce.

“We’re thrilled to join forces with Onward Capital and its investors,” said John Watkins, president of FSC. “We’ve been looking for partners who would support our growth, share our vision for the company and enable us to continue to provide the stellar customer experience our clients have come to expect. FSC is now positioned to do this on an even greater scale.”

Tecum Capital led the mezzanine debt financing, and TCF Capital Funding—a division of TCF National Bank—provided senior debt financing in support of the acquisition.

About ORIX Mezzanine & Private Equity
ORIX Mezzanine & Private Equity, a business unit of ORIX Corporation USA (ORIX USA), expands alternatives for lower-mid to middle-market companies throughout North America by offering standalone equity investments (control and non-control), flexible mezzanine capital or a combination of the two strategies. Investments are predominantly with independent sponsors and also include investments with funded equity sponsors, family offices, and directly with entrepreneurs and management teams. Typical investments are initially in the $10 million to $20 million range with the ability to further grow to support our clients’ success. Providing innovative capital solutions to clients since 1981, ORIX USA and its family of companies have $63 billion of assets under management, administration and servicing (including more than $10 billion held by the company and its subsidiaries). Its parent company, ORIX Corporation, is a publicly owned international financial services company with operations in 38 countries and regions worldwide. ORIX Corporation is listed on the Tokyo Stock Exchange (8591) and New York Stock Exchange (IX). For more information visit www.orix.com or www.orixmpe.com.

About Onward Capital LLC
Onward Capital is a Chicago-based private equity firm focused on investing in and growing lower middle-market industrial businesses. The Onward Partners have completed over 120 private equity transactions and invested $1 billion of capital in the sector. Onward targets manufacturing and value-added distribution companies, typically with revenues between $15 million and $100 million. For more information on Onward Capital, please visit www.onwardcapllc.com.

About FSC Lighting
FSC Lighting manufactures energy-efficient LED lighting for commercial, industrial and retail customers. Founded in 1969 and committed to going beyond efficiency every day, FSC’s cutting-edge energy-efficient products can be quickly customized or shipped as is for lighting retrofit projects and new construction. For more information on FSC Lighting, please visit www.fsclighting.com.

About Tecum Capital
With over $500 million of assets under management, Tecum Capital is a Pittsburgh-based investment firm investing private capital in lower middle-market companies. Tecum provides mezzanine debt and equity investments across a variety of industries. Our team partners with independent sponsors, family offices, business owners seeking succession plans and management teams to create shared success. Since 2006, the team has invested in over 80 platform and add-on acquisitions. Tecum is predominantly focused on stable middle-market businesses with EBITDA in excess of $3 million. Tecum seeks to invest $5 million to $18 million in potential portfolio companies. For more information, please visit www.tecum.com.