Lariat Partners has invested in LaMi Holdings, a distributor and merchandiser of non-edible, general merchandise impulse items sold through grocery stores and other retail channels.
LaMi’s impulse items typically retail for less than $9.99 and are cross merchandised throughout a grocery or retail store using clip-strips, power panels, towers, and aisle end caps. For example, the company’s ice cream scoops are racked next to freezers, and pet toys are racked adjacent to pet food. LaMi serves over 7000 grocery stores and sells through more than 20,000 retail outlets. The company operates a 250,000 square foot warehouse with over 3500 SKU’s and over 700 employees. LaMi was founded in 1978 by Larry and Michael Dion (Co-Chief Executive Officers) and is based north of Philadelphia in Huntingdon Valley, PA (www.lamiretail.com).
Lariat’s investment will provide growth capital to help LaMi complete its new state-of-the-art automated warehouse, improve sourcing, fund expansion-related expenditures, and pursue other growth opportunities.
“Our new state-of-the-art warehouse and robotic pick-n-pack system will enable us to continue our growth while providing just-in-time inventory to customers,” said Larry Dion. “The partnership with Lariat and the recapitalization effort will play a key role in helping us replicate this automated warehouse operation on the west coast in the near future.”
“LaMi provides a strong value proposition to its customers that we believe is only going to improve as the grocery industry seeks new sources of revenue. Larry, Michael and the LaMi team have proven their ability to execute throughout their long entrepreneurial history, and we are excited to help them continue achieving their vision,” said Jay Coughlon, Managing Partner for Lariat Partners.
Lariat invests in lower middle market companies that have EBITDA of $2 million to $20 million. The firm targets companies across a number of industries, including specialty agriculture, energy & environmental services, consumer products and maritime services. Lariat raised its first investment fund in July 2014 with $118 million of capital commitments. Lariat was founded in January 2013 by Jay Coughlon and Kevin Mitchell and is based in Denver (www.lariatpartners.net).
© 2015 PEPD • Private Equity’s Leading News Magazine • 9-28-15
