LMG is the leading provider of ignition interlock devices, which prevent a vehicle from starting if operators have an unacceptable amount of alcohol in their system. LMG was formed as a result of the acquisition of Monitech and Guardian by Lineage’s platform investment, Lifesafer.
OVERVIEW
Lifesafer’s shareholders had been approached about selling their business many times in the past but declined to pursue these opportunities because of a desire to continue to control the direction of the company and to participate in the expected substantial growth of the business. When presented with Lineage’s approach – the opportunity to achieve meaningful liquidity, gain a partner to help build the necessary infrastructure to drive sustained growth, and maintain Board control – the shareholders elected to pursue a transaction with us. The shareholders viewed bringing on an experienced investor as essential for recruiting key senior management talent that would enable them to transition to strategic roles. Additionally, they hoped a new partner would serve as the catalyst to fully integrate LifeSafer’s manufacturing, leasing, and service provider businesses to capture the full potential of the company.
Throughout our investment period, Lineage has worked with LMG to create the leadership team and operational infrastructure to support rapid growth through multiple complementary strategic acquisitions. We helped the company’s founders identify and recruit several key senior leadership positions (including CEO, CFO, CTO and CMO) and create an operational infrastructure to support growth. Lineage has also helped implement new financial and operational controls.
RESULTS
LMG is an active Lineage portfolio company, and has nearly tripled in revenue and profit since our initial investment. We continue to work collaboratively with the original shareholders to maintain a market leading position.
Investment Date: December 2010
Exit Date: Current Portfolio
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