Foresight Group (Foresight) has committed to invest up to £4.5m funding Industrial Efficiency II Limited ("IEL II”), a company focused on the provision of large scale energy efficiency and energy cost reduction improvements to commercial customers.
The initial investment focus is on energy efficient and fuel switching projects with CEMEX UK, the building materials solution provider.
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This transaction follows a successful precursor deal completed between Foresight and CEMEX in 2013, which focused on CEMEX’s Asphalt Plant in Lincoln. The follow-on transaction invests in fuel switching solutions at ten of CEMEX’s sites throughout the country and is projected to deliver more than 7,500 tonnes of CO2 savings per year once fully operational. The purchase, installation and ongoing operation of the fuel switching solutions will be fully funded by IEL II. Returns will be driven by the financial value of the savings made by the solution. The returns are not dependant on a sale of IEL II nor any government subsidies or tariffs.
This successfully completed investment and Foresight’s previous Investment with CEMEX UK in 2013, follow another successful energy efficiency transaction completed with David Lloyd Leisure Limited in 2012. It establishes Foresight as one of the market leaders for the provision and structuring of independent financing for the energy efficiency sector in the UK. In each case Foresight has successfully worked with Decarbon Capital, a specialist energy efficiency investment company, in a constructive way to provide an attractive solution for the corporate customer and investors.
Matt Smith, Director at Foresight, said: "This investment solution builds on our pilot at one of CEMEX’s plants, which is performing well. It takes the total amount invested in projects with CEMEX to approximately £5m. We have funds to deploy in the energy efficiency market and look forward to closing similar innovative deals in the future, which may well adopt a structure similar to that developed on this transaction.”
Martin Hills, Energy Manager at CEMEX UK, said: "CEMEX is committed to driving sustainability throughout its operations. The projects that will be enabled by this investment will reduce the carbon emissions whilst minimising rising energy costs at each of the sites in question.”
Dan Saunders, Managing Director at Decarbon Capital, commented: "Once again the success of this investment model is down to the alignment of all parties to deliver a tailored solution that creates tangible value for our customers, both today and in the future. We are proud to work with CEMEX UK and Foresight on making these projects a reality.”
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Ben Thompson, Group Marketing Director: firstname.lastname@example.org / +44 (0)20 3667 8155
Notes to Editors:
About Foresight Group:
Foresight Group is a leading infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for 30 years.
Foresight has more than £1 billion of assets under management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs).
Foresight’s Private Equity team, comprised of eleven investment professionals, invests typically between £1m and £5m in management buy-outs, management buy-ins, and growth capital investments in UK SMEs.
CEMEX is a global manufacturer of building materials and the biggest Mexican investor in the UK, with 3,000 people employed across 450 sites nationwide. In this country, we are a leading provider of aggregates, cement, ready-mixed concrete and rail sleepers with annual sales of around £1 billion.
Helping to build a Great Britain – CEMEX’s vision is to help build a greater Britain by providing solutions to construction problems through our innovative building materials, our expertise, our understanding of the construction issues and our people. We aim to create the best service and the best solutions for a better future.
About Decarbon Capital: Decarbon works with businesses to fund energy related solutions that drive cost reduction and improve sustainability. Decarbon’s goal is to ensure that our client’s businesses remain competitive through investment in new or existing solutions that are proven to lower operational expenditure.