Boston-based Lineage Capital has invested an undisclosed amount in LifeSafer Interlock Holdings, a maker of ignition interlock devices used in the automobiles of convicted drunk driving offenders. Financial terms of the deal were not released. Northstar Capital provided debt financing and an undisclosed amount of equity in the round.
Lineage Capital, LLC today announced it has completed an investment in LifeSafer Interlock Holdings, Inc., (“LifeSafer”) an industry pioneer and leading manufacturer of ignition interlock devices used in the automobiles of convicted drunk driving offenders. Headquartered in Cincinnati, Ohio, LifeSafer manufactures, distributes, and services products that prevent a vehicle from being operated if the vehicle’s driver has consumed alcohol.
Lineage invested equity from its $157 million fund, while Northstar Capital LLC provided debt financing and an equity co-investment to support the transaction. Financial terms were not disclosed.
“LifeSafer is the industry leading manufacturer and distributor of ignition interlock devices, which have been proven to reduce injuries and fatalities associated with drunk driving,” said Mark Sullivan, a Partner at Lineage Capital. “We believe there are significant opportunities to grow and expand the company’s business by working closely with our management partners at LifeSafer.”
Under its new investment and ownership structure, LifeSafer’s industry leading manufacturing, product development and third party distribution operations and two affiliated distribution units – National Interlock Systems, Inc. and Affordable Ignition Interlock – will be combined into one company to better position the company for accelerated growth. As part of the combination, LifeSafer has recruited three new senior executives to augment the company’s existing leadership team. The companies will operate as LifeSafer Interlock Holdings, Inc.
“Lineage Capital’s distinctive investment model supporting owner-managed businesses, coupled with the firm’s seasoned experience in growing companies, will enable LifeSafer to pursue the next chapter in its evolution as the pioneer and leading provider of ignition interlock devices,” said Richard Freund, founder of LifeSafer.
“The nation’s law enforcement agencies make 1.2 million DUI-related arrests each year. With more states mandating the use of interlock devices, we are poised to benefit from growing demand for LifeSafer’s products,” said Michael Balgord, President of National Interlock.
”Lineage Capital’s willingness to provide significant value-added support, combined with their unique investment model allowing us to retain control of our board of directors, were attractive incentives to join with our new partners and take the next step in positioning our company for further growth,” said Jerry Stanton, President of Affordable Ignition Interlock.
Freund, Balgord, and Stanton, who worked closely over the last two decades to grow their businesses, will continue to lead LifeSafer’s newly-consolidated leadership team and hold substantial ownership stakes in the Ohio-based company.
White Oak Partners introduced Lineage Capital to LifeSafer and provided financial advisory services as part of the transaction.
LifeSafer is the leading manufacturer and distributor of ignition interlock devices in the United States that are employed in the vehicles of DUI-convicted offenders. For more information please visit www.lifesafer.com.
About Lineage Capital
Lineage Capital invests exclusively in owner-managed businesses. With its unique partnership approach, Lineage Capital provides significant liquidity to committed business owners while enabling them to simultaneously retain operating and board control and access growth capital for their companies. The firm invests in high quality, lower middle market businesses with more than $4 million of EBITDA and backs management teams that desire a value-added partner to facilitate their future growth and success. More information about Lineage Capital can be found at www.lineagecap.com.