LMI Announces Plans to Reposition, Sell For-Profit Subsidiary

Management consulting, logistics, and digital & analytics solutions provider LMI has agreed to sell its for-profit subsidiary to a group of investment firms, leaving behind a nonprofit entity that will be rebranded as the freestanding NobleReach Foundation. The deal is expected to close in Q3 2022.

LMI was founded in 1961 to provide the Department of Defense with solutions to complex challenges, and today offers digital services, advanced analytics, logistics, and technology-enabled management advisory services across the federal government, including the Department of Defense, Department of Homeland Security, and the health and intelligence communities. The move comes as LMI faces challenges in continuing its growth trajectory, requiring significant investment in research and development as well as acquisitions to best position itself to provide solutions to the most pressing problems the federal government faces.

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The consortium of investment firms seeking to purchase LMI’s for-profit subsidiary, Declaration Partners, Capitol Meridian Partners, and 22C Capital, are no strangers to LMI, with a number of LMI board members having worked with them in the past. The purchase will enable LMI to increase its investments in expansion and become a bigger player in logistics management and analytics, growing its presence in sectors such as intelligence and space. KippsDeSanto & Co. served as the M&A advisor to LMI, and Macquarie served as M&A advisor to the investors. The investors were also advised by Latham & Watkins, Sidley Austin, and Paul Weiss on various aspects of the transaction.

“This new partnership will better position LMI to innovate and support the missions of its government customers. Declaration, Capitol Meridian, and 22C bring an extensive knowledge of the government marketplace and a deep technology expertise, strengthening our ability to help our customers solve their complex challenges,” said Doug Wagoner, LMI President and Chief Executive Officer, adding, “Our people are our greatest asset. This opportunity expands our ability to attract and retain the best talent while maintaining our winning LMI culture.”

All of LMI’s 2,100 employees will remain with the subsidiary, with the exception of five executives who will lead the NobleReach Foundation, which will focus on non-profit national security work, with Wagoner staying to lead the newly acquired for-profit entity. While the terms of the deal were not publicly disclosed, all proceeds of the sale will go to the NobleReach foundation.