FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Chatham Capital Provides Debt Financing for ACI Last Mile Acquisition of CIPS Marketing Group

August 02, 2017, 07:00 AM
Filed Under: Media

ACI Last Mile, LLC has acquired CIPS Marketing Group, Inc. from Los Angeles Times Communications, LLC and MediaNews Group  Ventures, LLC. FocalPoint Securities, LLC  served as the exclusive investment bank to ACI, advising on the acquisition and arranging debt financing through Chatham Capital.

Headquartered in Long Beach, CA, ACI is the nation's fastest-growing provider of print media and parcel distribution for the last mile. Over the past 51 years, ACI has built a sophisticated, nationwide distribution network that utilizes industry-leading routing technology and a network of independent distributors and contractors to provide delivery cost savings for a diverse customer base of publishers, advertisers, retailers, and high-volume parcel shippers. In addition to the Los Angeles Times and Digital First Media, ACI serves as a key partner to iconic publications that include the Miami Herald, the San Diego Union-Tribune, and a growing list of e-commerce retailers and distributors, having established parcel delivery services in southern California, Phoenix, St. Louis, and New York City. CIPS, a long-standing competitor based in Los Angeles, CA, offers a complementary geographic presence and significantly strengthens ACI's presence within the advertising packages market segment.
Keith Somers, CEO of ACI, commented, "CIPS has been a competitor for about 30 years, and it's been owned by two very important customers of ours since 2000. This acquisition shores up our position, consolidates our business, and helps us serve our customers more effectively. The FocalPoint team provided us with invaluable advice throughout the transaction and managed a highly complicated three-way negotiation, securing an optimal outcome for our business. In addition, their debt capital markets expertise allowed us to find in Chatham Capital a sophisticated investor that we feel very comfortable partnering with over the long term."
Regarding the transaction, Nishen Radia, Managing Partner at FocalPoint, said, "We take great pride advising entrepreneurs like Keith and the ACI team, who are trying to complete transformative acquisitions. In acquiring CIPS, ACI has succeeded in building a market-leading logistics business that leverages a comprehensive print distribution footprint to meet the challenges of the new e-commerce world. This transaction represents our second logistics transaction of the year."
Thomas Mills, Managing Director at FocalPoint, added, "We are pleased to be able to bring the right capital structure to ACI. Chatham stood out early in the process, quickly recognizing the attractive investment opportunity, and steadily working through diligence towards the closing. We are confident that they will make a strong partner for ACI during the next several years. For FocalPoint, this transaction showcases the results our clients achieve through the combination of our M&A and Capital Markets practices."

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.