BOSTON and HOUSTON, July 30,
2024 /PRNewswire/ -- Ara Partners, a global private
equity firm that is decarbonizing the industrial economy, today
announced the sale of Priority Power Management, Inc. ("Priority
Power"), to funds advised by I Squared Capital ("I Squared"). Under
the terms of the agreement, I Squared's Global Infrastructure Fund
III will acquire Priority Power from Ara Partners, Oaktree Capital
Management, L.P. and other shareholders. Brandon Schwertner
will continue as the Chief Executive Officer and remain an equity
holder in the company following the completion of the
transaction.
Priority Power was founded in 2001 and is one of the largest
independent providers of turnkey energy management services for
commercial and industrial customers with approximately 10,000
customer contracts, a 95% customer retention rate and customers
across more than 40 U.S. states. Priority Power provides
energy management services to help customers reduce their energy
costs, improve energy efficiency, achieve reduced emissions and
access secure, reliable energy. Ara Partners invested in Priority
Power in 2019 and has worked closely with the company's management
team to launch and expand key business lines (including the
formation of the company's renewable development and energy
curtailment service offerings as well as the growth of the remote
asset management services business), refine the company's M&A
strategy, advise on key hiring decisions and facilitate the
company's initial debt financing.
"At Ara Partners, we look to bring technical, operational,
and private equity investing expertise to maximize decarbonization
results while advancing the development of businesses with
high-value, sustainable long-term models," said Troy Thacker, Managing Partner at Ara Partners.
"Priority Power is one of the leading forces enabling commercial
and industrial customers across North
America to optimize their energy usage and decarbonize.
Through Ara's investment, and our close partnership with Priority
Power's exceptional team, we are proud of the economic and
environmental gains we have been able to realize. We are confident
that Priority Power will continue contributing to a lower carbon
economy."
Brandon Schwertner noted, "We have greatly valued Ara's
partnership and the team's ability to support us in
institutionalizing our business, participating in the development
of our M&A strategy, and supporting the measurement of our
decarbonization progress. I am confident that the strong foundation
laid by Ara Partners will continue to drive our success as we
embark on our next chapter with I Squared."
John Bick, Priority Power's Executive Chairman and Senior
Advisor, added, "We were excited about Ara's investment given the
firm's strategic perspective, strong commitment to decarbonization
and ability to foster a culture of innovation. Through Ara's
partnership, we have been able to offer our customers additional
solutions and expand into new markets. I am extremely proud of what
the team has accomplished alongside Ara's strategic
support."
Ara's investment in Priority Power was made through Ara Fund I.
The global private equity platform has completed 28 investments in
that period across the industrial decarbonization space. The team
is currently deploying Ara Fund III, a $2.8bn vehicle raised in 2023, and has been
active in the U.S. and Europe in
recent months with transactions including the acquisition of a
majority stake in Vacuumschmelze ("VAC"), a leading global producer
of advanced magnetic solutions, rare earth permanent magnets, and
inductive components that are crucial for the decarbonization of
our planet. Across its portfolio, Ara reduced emissions by an
estimated 10.8m metric tonnes of CO2
equivalent and eliminated an estimated 424.4k metric tonnes of waste in 2023.
Jefferies LLC served as lead financial advisor and BMO Capital
Markets served as a financial advisor to Priority Power in
connection with the transaction. BofA Securities served as
exclusive financial advisor to I Squared. Latham &
Watkins LLP served as legal counsel to Priority Power and White
& Case LLP served as legal counsel to I Squared.
About Ara Partners
Ara Partners is a global
private equity and infrastructure investment firm focused on
industrial decarbonization. Founded in 2017, Ara Partners seeks to
build and scale companies with significant decarbonization impact
across the industrial and manufacturing, chemicals and materials,
energy efficiency and green fuels, and food and agriculture
sectors. The company operates from offices in Houston, Boston, Washington,
D.C., and Dublin. Ara
Partners closed its third private equity fund in December 2023 with over $2.8 billion in capital commitments. As of
March 31, 2024, Ara Partners had
approximately $6.2 billion of assets
under management. For more information about Ara Partners, please
visit www.arapartners.com.
About Priority Power
Priority Power is one of the
largest independent providers of turnkey energy management services
for commercial and industrial customers in the U.S. The Company
helps businesses procure energy that meets their cost and
sustainability goals; monetize flexibility in their load to reduce
their energy costs; and upgrade their facilities' energy
infrastructure to make their operations less costly, more resilient
and more sustainable. Founded in 2001 and headquartered in
The Woodlands, Texas, Priority
Power manages energy for more than 8,500 clients across the U.S.
and has developed over $900 million
of private transmission and distribution infrastructure for its
customers. For more information on Priority Power, please visit
www.prioritypower.com.
Media Contacts
For Ara:
Scott Bisang / Jack Kelleher
Collected Strategies
Ara-CS@collectedstrategies.com
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SOURCE Ara Partners