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July 18, 2017

Los Angeles, CA – ACI Last Mile, LLC (“ACI”) has acquired CIPS Marketing Group, Inc. (“CIPS”) from Los Angeles Times Communications, LLC (“Los Angeles Times”) and MediaNews Group Ventures, LLC (“Digital First Media”). FocalPoint Securities, LLC (“FocalPoint”) served as the exclusive investment bank to ACI, advising on the acquisition and arranging debt financing through Chatham Capital.

Headquartered in Long Beach, CA, ACI is the nation’s fastest-growing provider of print media and parcel distribution for the last mile. Over the past 51 years, ACI has built a sophisticated, nationwide distribution network that utilizes industry-leading routing technology and a network of independent distributors and contractors to provide delivery cost savings for a diverse customer base of publishers, advertisers, retailers, and high-volume parcel shippers. In addition to the Los Angeles Times and Digital First Media, ACI serves as a key partner to iconic publications that include the Miami Herald, the San Diego Union-Tribune, and a growing list of e-commerce retailers and distributors, having established parcel delivery services in southern California, Phoenix, St. Louis, and New York City. CIPS, a long-standing competitor based in Los Angeles, CA, offers a complementary geographic presence and significantly strengthens ACI’s presence within the advertising packages market segment.

Keith Somers , CEO of ACI, commented, “CIPS has been a competitor for about 30 years, and it’s been owned by two very important customers of ours since 2000. This acquisition shores up our position, consolidates our business, and helps us serve our customers more effectively. The FocalPoint team provided us with invaluable advice throughout the transaction and managed a highly complicated three-way negotiation, securing an optimal outcome for our business. In addition, their debt capital markets expertise allowed us to find in Chatham Capital a sophisticated investor that we feel very comfortable partnering with over the long term.”

Regarding the transaction, Nishen Radia, Managing Partner at FocalPoint, said, “We take great pride advising entrepreneurs like Keith and the ACI team, who are trying to complete transformative acquisitions. In acquiring CIPS, ACI has succeeded in building a market-leading logistics business that leverages a comprehensive print distribution footprint to meet the challenges of the new e-commerce world. This transaction represents our second logistics transaction of the year.”

Thomas Mills , Managing Director at FocalPoint, added, “We are pleased to be able to bring the right capital structure to ACI. Chatham stood out early in the process, quickly recognizing the attractive investment opportunity, and steadily working through diligence towards the closing. We are confident that they will make a strong partner for ACI during the next several years. For FocalPoint, this transaction showcases the results our clients achieve through the combination of our M&A and Capital Markets practices.”

About ACI Last Mile

ACI Last Mile, headquartered in Long Beach, CA, and established in 1965, has the fastest-growing delivery network and provides home-delivery services to its e-commerce and publishing customers at considerable cost reductions. ACI’s commitment to being “First in the Last Mile” speaks to their ability to fulfill the growing demand for high-volume residential delivery. In the world of last mile delivery, ACI truly has “the crowd already sourced.”

About CIPS Marketing Group

CIPS Marketing Group, headquartered in Los Angeles, CA, was founded in 1972. The Company specializes in inserts and Total Market Coverage products, and provides marketing and distribution services for alternative advertisers, national retailers, and newspaper publications.

About Chatham Capital

Chatham Capital is a private investment firm that provides debt and equity solutions to companies throughout North America by focusing on building strong, long-term relationships with entrepreneurs, capital providers, and other intermediaries alike. Since 2001, Chatham has provided flexible capital solutions to more than 180 companies. Chatham’s principals’ 100+ years of experience in leveraged lending, private equity, investment banking, operational management, consulting, and accounting provide our portfolio companies and co-investors with the necessary expertise to capitalize on expansion opportunities within the middle-market.

About FocalPoint Partners

FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings, and special situation transactions. With offices in Los Angeles and Chicago, the firm serves middle-market clients throughout the U.S. and has dedicated business services and capital markets teams. Since its inception in 2002, FocalPoint has completed approximately $6 billion in transactions. For more information on FocalPoint Partners, visit www.focalpointllc.com.

Please contact Nishen Radia , Managing Director, at (310) 405-7040 or Tom Mills, Managing Director, at (312) 508-5777 with questions about this transaction.