ORIX Mezzanine & Private Equity, a business unit of ORIX Corporation USA, announced 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 equity capital partner for independent sponsors throughout North America.
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.
“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.”