LMC Sources Facility for Company’s Maritime Security Firm Buy
The London Manhattan Company (LMC) announced it recently sourced a three-year $7 million facility for the acquisition of a maritime security services provider located in London, England. Its client was a U.S.-based family investment partnership whose principals have invested more than $3 billion in a broad array of industries.
In 2013, the target had revenues of approximately $18 million, and EBITDA of just under $6 million. The deal closed 24 business days after LMC was engaged by the client, and 14 business days after the client signed the successful lender term sheet.
The facility sourced by LMC provided acquisition funding to accompany the client’s equity investment in the transaction. The facility was secured by a first lien on the target’s A/R, inventory and equipment as well as a security interest in certain intangibles, contracts and other assets owned by the company.
The acquired target provides security services for the maritime shipping vessels traveling near Africa’s material rich coasts. These advanced security services were what Captain Phillips needed on his voyage when his ship was boarded by force in 2009 by Somali pirates.
The acquired security firm has developed innovative methods of ensuring safe passage for vessels facing significant piracy and terrorism risk. It has focused upon a unique blend of military, maritime and commercial capabilities. This blend of services makes for a profitable and scalable business in the rapidly changing maritime security industry.