ACI Last Mile Network said Tuesday it had acquired CIPS Marketing Group – which was jointly owned by the Los Angeles Times and Digital First Media – for an undisclosed sum.
Long Beach-based ACI already has contracts with both newspaper outlets to deliver subscription papers, advertising packages and community news, according to Chief Executive Keith Somers. Somers said the company has a nationwide distribution network, but that the acquisition of Willowbrook-based CIPS bolstered ACI’s position in the market – particularly on the advertising packages front – significantly.
“CIPS has been a competitor for about 30 years, and it’s been owned by two very important customers of ours since 2000,” Somers said. “So (the acquisition) shores up our position and consolidates our business and helps us serve our customers more effectively.”
ACI services newspapers that include the Orange County Register, Miami Herald, Atlanta Journal-Constitution, San Diego Union-Tribune and several others in addition to the Times.
Somers said the company had grown revenues to more than $100 million after the CIPS deal from about $20 million five years ago. The company has expanded into more than just the newspaper and advertising package delivery service and now acts as a full-service parcel delivery company, according to Somers.
Greenberg Glusker Fields Claman & Machtinger were legal counsel to ACI and FocalPoint Partners acted as financial advisors.
Deals & Dealmakers reporter Henry Meier can be reached at firstname.lastname@example.org. Follow him on Twitter @henry_meier.