FMI Capital Advisors Energy Solutions & Cleantech Update

RALEIGH, N.C., Aug. 21, 2017 /PRNewswire-iReach/ -- Robust Energy Solutions & Cleantech Market - The market for Energy Solutions & Cleantech (ESCT) transactions was strong during the first half of 2017, and we expect that trend to continue. FMI Capital Advisors closed four ESCT transactions (and 17 transactions in all sectors) through mid-year 2017.

Furthermore, we are finding that several of our specialty contracting deals (say in mechanical, electrical, and building controls) are influenced by buyer strategies and market trends driving the ESCT market.

Energy and Operational Efficiency Services / Technologies Remain High-Value Targets – Companies that help clients optimize energy usage through energy efficiency projects, technology-enabled facilities management / O&M, and other energy solutions are highly attractive targets in the ESCT M&A market.

Veolia acquired Enovity, a market leader in building energy services and technology-enabled facilities management, in order to strengthen its building energy services capabilities. FMI Capital Advisors acted as the exclusive financial advisor to Enovity on this transaction.

Private Equity Platforms are Competitive Buyers – ESCT is seen (appropriately, in our view) as a growth market where private equity firms can help companies gain scale and scope, creating significant value. FMI Capital Advisors acted as the exclusive financial advisor to Bow River Capital Partners in their acquisition of MidState Energy, a regional Energy Services Company focused on providing performance contracting and related services.

Additionally, FMI Capital Advisors acted as the exclusive financial advisor to RTS in its merger with LRI, owned by DFW Capital Partners.

Uptick in M&A for Services / Technologies for Utilities – We expect to see an increase in transactions regarding companies that provide services and technologies to utilities as utilities deal with changing business models and an increase in distributed energy resources (DER). FMI Capital Advisors acted as the exclusive financial advisor in the sale of certain utility demand side management (DSM) contracts and software to TRC Companies (which recently announced it is being acquired by New Mountain Capital, a private equity firm).

LEDs Lead the Way – The strong economics behind LED retrofits are driving a wave of projects in buildings, parking lots, and streets (streetlighting) across North America.

The "obvious" discussion around LED retrofits often leads to less obvious but valuable discussions around connected lighting, more complex and comprehensive energy efficiency measures, building energy management systems, distributed generation, and similar energy services and technologies. LEDs are a central driving force in many of the deals we see currently (for example, in the RTS deal).

Our Team is Growing – We are excited to announce that we have grown our ESCT team with the addition of Andrew Henderson as an Investment Banking Associate and the return of Russell Clarke as an Investment Banking Associate (Russell was an Analyst in our ESCT group prior to business school).

Please feel free to reach out to any of us to discuss the ESCT market. We wish you a great second half of 2017, and we look forward to staying in touch.

FMI Capital Advisors:

Tim Huckaby
Managing Director
THuckaby@fminet.com
303-398-7265    

Andrew Henderson
IB Associate
AHenderson@fminet.com
303-398-7230    

Russell Clarke
IB Associate
RClarke@fminet.com
303-398-7213

About FMI Capital Advisors:

FMI Capital Advisors, a subsidiary of FMI Corporation, is a leading investment banking firm exclusively serving engineering and construction, infrastructure and the built environment. With over 600 completed transactions, our unique industry focus enables us to provide our clients with valuable insight and advice. Clients gain access to our unparalleled network of industry contacts and relationships, deep market knowledge and technical expertise, based on decades of experience.

FMI Capital Advisors Energy Solutions & Cleantech Group provides M&A and capital formation services for companies in the energy services and cleantech industry, including those focused on:

• Energy Efficiency
• Solar, Wind, Biomass
• Distributed Generation
• Energy Procurement
• Demand Response
• Operations & Maintenance
• Energy Management Systems
• Utility Demand Side Management
• Power Quality & Reliability
• Energy Storage
• Intelligent Buildings, IoT
• Measurement & Verification

Media Contact:Rebecca Esler, FMI Corporation, 919-785-9209, resler@fminet.com

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SOURCE FMI Corporation