LOS ANGELES--Angeles Equity Partners, LLC, a private investment firm focused on value creation through operational transformation, today announced that it has acquired, through an affiliated entity, a controlling interest in ERP Power, LLC (ERP), an LED driver business based in Moorpark, CA. Financial terms of the transaction were not disclosed.
Angeles Equity Partners is partnering with ERP management to realize the company’s full growth potential and drive consolidation in the sector. The deal leverages the Angeles Equity Partners team’s previous power electronics sector investment experience and operational transformation expertise.
“ERP is recognized by the market as a leading provider of LED drivers that are enabling the evolution from analog to digital in the lighting industry. We see this as a compelling opportunity for our firm to partner with a great management team and position ERP to outperform the market, deliver superior financial results and drive industry consolidation,” said Timothy Meyer, co-founder and managing partner of Angeles Equity Partners.
“We envision a future where LED lighting will be the backbone of the Internet of Things (IoT), enabling a completely new connected world where light becomes data and delivers engaging interactive experiences for people everywhere,” said Michael Archer, CEO of ERP Power. “The Angeles Equity Partners team has significant experience creating value in businesses in which they invest. We believe – based on AEP’s power electronics industry experience, operational capabilities, and M&A expertise – they are the right partner to help us achieve our long term potential.”
“ERP is an innovative leader in the LED lighting revolution," said Jack Zukerman, CEO of LF Illumination, and legendary entrepreneur whose energy saving technologies have captured the admiration and imagination of the architectural lighting industry. "Because of their technology, responsiveness, flexibility and service, ERP is instrumental to LF Illumination's growth as a key partner who delivers ever-smaller LED drivers with superior dimming, flexible programming, and intelligent controls."
“This is a proprietary transaction that aligns tightly with our firm’s strategy and capabilities; and is the result of a proactive, thesis-driven deal origination strategy leveraging our power electronics sector knowledge. We view ERP as the ideal cornerstone investment to build a leading scale asset in the LED drivers space,” said Jordan Katz, co-founder and managing partner of Angeles Equity Partners.
Based on research, analysis and information from IHS, the commercial and industrial LED driver power supply market is predicted to increase at a compound annual growth rate (CAGR) of 25% from over $2 billion in 2015 to $4.8 billion in 2019. The market growth is driven by a combination of regulatory policy, advances in technology, energy savings, and attractive pricing, which provides a convincing reason for LED lighting deployments in bank branches, factories, hotels, horticulture, office buildings, retail stores, stadiums, street lights, supermarkets, theaters, and warehouses. Shipments for commercial and industrial LED luminaires, in which LED drivers are typically installed, are projected to grow at a CAGR of 33% from 97 million units in 2015 to 309 million units in 2019, according to IHS estimates.
About Angeles Equity Partners, LLC
Angeles Equity Partners is a private equity firm that invests in companies across a wide range of industrial sectors and specifically targets businesses which it believes can directly benefit from the firm’s deep expertise in operational transformation and strategic repositioning. This skill set drives the firm’s investment philosophy and, in its view, can help underperforming businesses reach their full potential. Learn more online at www.angelesequity.com.
About ERP Power, LLC
Established in 2004, ERP designs and manufactures energy-efficient LED driver power electronics for commercial and industrial applications. Small, yet powerful, ERP products deliver an industry-leading combination of compact size, extensive dimmer compatibility, and high efficiency at competitive cost. Headquartered in Moorpark, CA, ERP owns and operates its own ISO 9001 certified manufacturing facility to ensure quality of design, sourcing, production and testing. Learn more online at www.erppowerllc.com.