Improving Workplace Safety: Levine Leichtman Capital Partners Sells Smith System

In today's fast-paced business world, workplace safety is a top concern for companies of all sizes. Ensuring the well-being of employees and compliance with regulations is crucial. Levine Leichtman Capital Partners (LLCP), a renowned private equity firm based in Los Angeles, has recently announced the sale of its portfolio company, Smith System Driver Improvement Institute, Inc. (Smith System), to MidOcean Partners. This transaction marks a significant milestone in the field of workplace safety training solutions.

Smith System is widely recognized as the "gold standard" provider of driver safety training for large commercial fleets. The company has been a leader in the industry since its founding in 1952 and is headquartered in Arlington, Texas. Its core focus is delivering workplace safety training solutions that allow clients to enhance employee safety, reduce costs, and comply with stringent regulations. With its unique value proposition, Smith System has trained millions of drivers across more than 100 countries and in over 15 languages.

LLCP's successful partnership with Smith System has resulted in substantial growth and transformation for the company. Through their expertise in the education and training sector, LLCP has implemented various growth initiatives during their ownership. These initiatives, including the innovation of eLearning content, expansion of online training capabilities, strategic growth into adjacent end-markets, and execution of a successful M&A strategy, have propelled the company's rapid scale.

Matthew Rich, a Partner at LLCP, expressed his satisfaction with the partnership, stating, "Education & Training has long been a core LLCP investment vertical, and the significant growth and transformation of Smith System during our ownership is a classic example of our sector expertise and value creation playbook at work." It is evident that LLCP's strategic involvement has positioned Smith System for continued growth.

Tony Douglas, President & CEO of Smith System, emphasized LLCP's crucial role in the company's success, referring to their partnership as a transformative experience. He highlighted LLCP's strategic and financial support as instrumental in the significant growth of Smith System. Douglas expressed his gratitude for LLCP's guidance, stating, "Our management team is grateful for LLCP’s partnership and guidance throughout our transformation. As a result of their strategic and financial support, Smith System has grown significantly, enabling our Company to further our mission of saving lives."

The transaction between LLCP and MidOcean Partners represents LLCP's 17th successful exit since December 2020, demonstrating their expertise in the private equity field. Smith System, which was an investment of Levine Leichtman Capital Partners Fund V, L.P., has proven to be another successful venture for LLCP.

Throughout the process of the sale, LLCP and Smith System were advised by Robert W. Baird & Co. and Kirkland & Ellis LLP, ensuring a seamless transition and successful outcome for all parties involved.

About Levine Leichtman Capital Partners

Levine Leichtman Capital Partners, LLC is a highly regarded middle-market private equity firm with a 39-year track record. The firm specializes in investing across various sectors, including Franchising & Multi-unit, Business Services, Education & Training, and Engineered Products & Manufacturing. LLCP employs a unique Structured Private Equity investment strategy, which combines debt and equity capital investments in portfolio companies. This strategy provides management teams with growth capital in a highly tailored, flexible investment structure, making it an attractive alternative to traditional private equity.

LLCP's globally recognized team of investment professionals is led by nine partners, each with an average tenure of 19 years at LLCP. With over $14.1 billion of institutional capital managed across 15 investment funds and investments in over 100 portfolio companies, LLCP's success is a testament to its expertise and commitment to delivering value. The firm currently manages $9.3 billion in assets and has offices in Los Angeles, New York, Chicago, Charlotte, Miami, London, Stockholm, The Hague, and Frankfurt.

In conclusion, the sale of Smith System to MidOcean Partners marks an exciting new chapter for the company. With LLCP's strategic guidance and support, Smith System is exceptionally positioned for continued growth in the field of workplace safety training solutions. The partnership between LLCP and Smith System serves as an inspiration to companies looking to enhance their workplace safety standards and prioritize the well-being of their employees.