NEW YORK, Sept. 11, 2014 (GLOBE NEWSWIRE) -- ForceField Energy Inc. ("ForceField") (Nasdaq:FNRG), a designer, seller and distributor of energy products and solutions announced the signing of an agreement to provide LED lighting solutions valued at $1.35 million with Grupo Merza, a large and prominent retail group with operations in 30 Mexican states through its 145 supermarkets and 18 distribution centers.
Under the terms of the agreement, ForceField Energy will supply LED lighting products and solutions to Grupo Merza and will receive a percentage of maintenance and energy savings based on a mutually agreed schedule over the initial 5-year period. The agreement covers the retrofit of the 145 store locations and 18 distribution centers located across 30 states in Mexico. Based on a shared cost savings and lease financing model, Forcefield will be responsible for the upfront cost of the LED lighting products, while Grupo Merza will be responsible for the cost of removal of the existing lighting products and the installation of the new LED products. The project is subject to ForceField obtaining financing.
The installation of LED products in the supermarkets is expected to take approximately six to nine months. This retrofit will generate significant energy and cost savings, and reduce greenhouse gas emissions via the adoption of an LED technology that is more environmentally friendly.
"For us, one of our crucial goals is to be close to our customers by offering the best service, most environmentally friendly shopping environment, and lowest cost." stated Guillermo Valdes Vega, CEO of Grupo Merza. "In order to achieve this goal, Grupo Merza chose to partner with ForceField Energy to supply high quality, energy efficient lighting solutions throughout all of our facilities. ForceField's diverse product offering combined with their flexible shared savings model, provided a tailored solution to meet our specific business needs. This agreement will enable us to expand our energy-efficiency efforts, reduce our carbon footprint, and create significant operational savings, further supporting our commitment to our customers, partners and communities we serve. Finally, this agreement is also indicative of our strong support and commitment to address Mexico's "Social Responsibility Initiatives".
"Being selected by Grupo Merza, a leading supermarket and wholesale operator in Mexico, provides a unique opportunity to expand our presence and enhance our visibility in this growing market. The shared savings agreement and scale of this program clearly demonstrates our ability to provide unique solutions to fit specific client needs. With the recent enactment of landmark energy reform in Mexico that structurally changed the national electric industry, as well as providing new mechanisms to encourage the use of clean energy sources, we are confident demand from diverse businesses throughout Mexico will accelerate over the coming months and years", stated Richard St Julien, ForceField's, Executive Chairman and President of its LED Division.
About Grupo Merza
Grupo Merza, a 100% Mexican Company with more than 65 years in the market and one of the largest retail companies in Mexico, started operations in 1948 and is focused on the distribution and marketing of groceries, with over 4,500 employees in their companies: Merza; Mega Merza, Abarrotes Lagunitas, Cava del Duero and Super Covi. Grupo Merza has 145 supermarkets and 18 distribution centers covering 30 states of Mexico. http://www.grupomerza.com.
About ForceField Energy Inc.
ForceField Energy Inc. and its subsidiaries comprise a global company whose products and solutions focus on sustainable energy solutions and improved energy efficiency. ForceField is a distributor of LED lighting products for a number of premier LED lighting manufacturers; and through its subsidiary American Lighting, is an award winning-contractor that has completed lighting installations for numerous high profile concerns in a variety of industries. ForceField is also a licensee of modular, heat recovery systems that convert waste heat into clean electricity. Its patented technology is based upon the Organic Rankine Cycle (ORC) and uses proprietary, multiple-component fluids that are environmentally sound.
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release are forward-looking. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "future," "anticipates" or anticipated," "believes," "estimated" or "estimates," "plan" or "planned," "expects" or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond ForceField's control that may cause actual results to differ materially from stated expectations. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include (i) achieving 2014 revenue and other financial guidance; (ii) the Company's ability to obtain adequate financing to achieve its LED objectives; (iii) the successful installation and efficacy of the Company's LED lighting products; (iv) successful integration of ALD's operations into ForceField; (v) the Company's ability to successfully raise sufficient capital to effectuate the ESCO acquisition as well as for additional working capital and closing the transaction before October 15, 2014, (vi) the ESCO transaction being accretive to ForceField's earnings, (vii) accelerating combined Company and ESCO growth, synergistic cost savings and performance subsequent to closing, (viii) the enormous revenue potential for the cross licensing agreement with Noveda (ix) obtaining additional orders from Sharp (x), obtaining financing to purchase inventory for the Grupo Merza locations and (xi) other factors, without limitation, which are set forth in documents we file from time to time with the Securities and Exchange Commission, which are available at www.sec.gov. For a written description of these factors, see the section titled "Risk Factors" in the Company's Form 10-K for the fiscal year ended December 31, 2013 and any updating information in subsequent SEC filings. The Company disclaims any intention or obligation to update these forward-looking statements whether as a result of subsequent events or otherwise, except as required by law.