TransactionFirePower advised Premise LED Inc. on its sale to EiKo Global

OUR ROLE

Advisory — Sell-Side

SECTOR

Industrials

OUR TEAM

Alan Chettiar
Somant Maraj
Kenan Dizdarevic
Jonathan Lehun
David Koleski

Premise first engaged with FirePower for advice on potential partners to help them manage growth and working capital challenges. Achieving growth targets was critical for shareholders ahead of selling the company. While not a fit for our private debt offering at the time, the two teams cultivated a relationship borne out of a mutual respect for the entrepreneurial spirit. When Premise reached their growth targets, its shareholders did not hesitate to engage with FirePower to advise them on the sale of the business.

Solution

In Q1 2020, with COVID-19 lockdown restrictions in full force, FirePower and Premise decided to delay a go-to-market. By Q3, Premise had rebounded and outperformed their US counterparts. Public companies in the sector traded at multiples of 10x EBITDA, yet the market remained hesitant. The Premise management team remained steadfast in FirePower’s ability to execute on their mandate and stayed the course. The advisory team’s tenacity resulted in Premise being acquired by EiKO, a lighting manufacturer with offices across North America, Europe and APAC, in late 2021.

The two companies are fully aligned in how they view their customers and present their value proposition. As a result, instead of exiting the business fully, the Premise owners have taken an active management role within EiKO. The acquisition by EiKO positions the two companies to become a top tier LED lighting player, providing clients with a complete product offering.