Lincolnshire Snags Auto Logistics Firm –

Lincolnshire Management recently acquired American Management and Logistics Inc. (AMLI), a logistics company. Specifics regarding total purchase price and EBITDA were withheld, but the total transaction was “less than $25 million,” according to Tom Callahan, a spokesman at Lincolnshire.

Mike Forlenza, a principal at Lincolnshire, explained his firm typically acquires companies with approximately five times EBITDA, and AMLI meets that criteria.

AMLI, headquartered in Baltimore, provides logistics support to the automobile industry by conducting pre-delivery inspections, accessory installation, inventory management, storage, vehicle preparation, and transport scheduling.

According to Forlenza, Lincolnshire targeted the port-based auto logistics sector prior to converging on AMLI. “When we came across them, they were not sure they wanted to do a deal. Management responded well to us, in part because of our industry knowledge – we did our homework.”

Forlenza also expressed the private equity firm’s strategy to keep AMLI’s existing management in place. “They have a deep pool of expertise, with extensive knowledge of the auto import-export business. AMLI management also holds a significant stake, more than 25 percent.”

To obtain AMLI and enter into the auto-processing sector, Lincolnshire utilized its $315 million Lincolnshire Equity Fund II, closed in October 2001.

Following the AMLI acquisition, the fund is 46% realized, and AMLI is Lincolnshire’s 12th unrealized acquisition to date. The firm’s portfolio earned approximately $660 million in revenue in 2001.

With a finite number of deep-water ports along U.S. coastlines, and approximately 75% of the 60 million cars and light trucks manufactured in 2002 made outside the U.S., the port-based and auto processing logistics sector could be valuable to auto maker profit margins, by reducing static inventory and shortening transfer times between ocean vessels and land-based transportation.