Lincoln International LLC represents Spell Capital Partners, LLC in the recapitalization of its portfolio company, LAI International, Inc., with an investment by RLJ Equity Partners, LLC
CHICAGO, Ill, January 11, 2010 – Lincoln International LLC, a global middle market investment bank, announced today the successful recapitalization of LAI International, Inc. (“LAI” or the “Company”), a leading manufacturer of precision engineered components and assemblies for a variety of industries including power generation, defense, commercial aerospace and healthcare. The recapitalization was completed through an investment by RLJ Equity Partners, LLC (“RLJ”). With the investment, RLJ acquired a significant portion of LAI. The investment provided partial liquidity to the Company’s financial sponsor, Spell Capital Partners, LLC (“Spell”) and other investors, while enabling Spell to continue to own a majority of the Company.
As the Company’s exclusive financial advisor, Lincoln International sourced the capital and worked closely with Spell and LAI’s senior management team on all aspects of the transaction, helping to structure, arrange and negotiate the recapitalization. Dobson West, Senior Managing Director at Spell said "Lincoln’s involvement allowed us to provide the Company’s shareholders with liquidity despite challenging macroeconomic and market conditions. In addition, Lincoln helped us maintain a strong valuation multiple for LAI throughout the entire process.” Stewart Cramer, President of LAI, added, “We are extremely pleased with the outcome of the process. Lincoln’s relationships and efforts helped us find the right partner for the Company moving forward. We are very excited about our partnership with RLJ Equity Partners.”
Lincoln International has developed a strong, long-term relationship with Spell Capital Partners, having completed five successful transactions for the financial sponsor since December 2005.
About LAI International, Inc.
LAI International, Inc. is a leading contract manufacturer of make-complete precision-engineered components and assemblies for aerospace, power generation, defense, medical and other advanced technology industries. The Company’s technology, engineering and manufacturing solutions are used to build components for airframes, aircraft engines, power generators, defense systems, medical devices and other industrial applications. LAI has developed strategic relationships with leading global OEMs and operates five U.S. manufacturing facilities, with locations in Minneapolis, Minnesota; Phoenix, Arizona; Tucson, Arizona; Westminster, Maryland; and Scarborough, Maine – all of which are IS0 9001:2008 and AS9100 certified. The Company also offers NADCAP-certified non-conventional machining processes. LAI has developed innovative applications in advanced machining processes, including waterjet cutting and drilling, laser cutting, drilling, welding and heat-treating, EDM drilling, CNC EDM, high-speed EDM, conventional CNC machining, five-axis CNC machining and precision grinding. The Company also provides gage calibration, tooling production, air-flow inspection and additional manufacturing services.
About Spell Capital Partners, LLC
Spell Capital Partners, LLC is a private equity firm based in Minneapolis, Minnesota that invests in lower middle market manufacturing and distribution businesses. The firm typically invests in companies with at least $2 million of EBITDA and makes equity investments between $4 million and $12 million.
About Lincoln International
Lincoln International LLC specializes in merger and acquisition services, debt advisory services, UK pension advisory services and provides fairness opinions and valuations for leading organizations involved in mid-market transactions. With offices in Chicago, Frankfurt, London, Los Angeles, Madrid, New York, Paris, Tokyo and Vienna, and strategic partnerships with China Everbright in China and ICICI Securities, Inc. in India, Lincoln International has strong local knowledge and contacts in the key global economies. The organization provides clients with senior-level attention, in-depth industry expertise and integrated resources.
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