Platinum Moves on Logistics Deal –

Platinum Equity LLC appears hardly fazed by the uncertainty in the economy and debt markets. The Los Angeles-based technology focused private equity firm last month acquired the Logistics Management Division of the Profit Recovery Group International Inc. The division sold for approximately $10 million in cash. Houlihan, Lokey, Howard & Zukin advised the sellers in the transaction.

“PRG made an announcement back early this year that they were going to try to focus more on their core accounts payable business, and they identified some operations that really were not part of their core services, such as logistics, communications and revenue recovery,” said Richard Bail, a managing director at Houlihan Lokey.

From Houlihan Lokey’s perspective, the company’s best chances for future profitability come with a financial partner, not with a strategic partner. “Strategic alliances were not as great from our perspective because we were concerned about the financial wherewithal of some of the other companies and their abilities to accomplish this deal,” said Bail. “So we focused primarily on the financial buyer universe and Platinum became an ideal partner because they had great chemistry with the parent company as well as with Logistics Management Division’s management team.”

Bail added that certain financial buyers such as Platinum Equity are trying to take advantage of the depth of their capital base to bypass the credit market as it relates to the seller’s concerns.

Atlanta-based Logistics Management provides an array of freight-related businesses such as pre-audits, processing and payment, post-audits and both Web-based and manual management reporting relating to all modes of transportation. The company processes over $1 billion in freight-related services per annum.

Platinum Equity has been on an acquisition bonanza as of late. According to the firm this deal marks its 14th within the past 12 months.