Fort Point Capital has completed the sale of Lone Star Overnight, a parcel delivery company, to Eagle Merchant Partners. The sale of Lone Star Overnight marks the first portfolio realization for Fort Point Capital which was founded in 2010.
Lone Star Overnight (LSO) is a regional provider of overnight parcel delivery service in the southwest United States. The company delivers thousands of packages every business day to nearly 3,000 ZIP codes in Texas, Oklahoma, Louisiana, New Mexico, Arkansas and Mexico. The company is headquartered in Austin (www.lso.com)
“The LSO team, led by Chief Executive Officer, Rick Jones, and Chief Financial Officer, George Stephens, did an excellent job of repositioning LSO as the best-in-class service provider in the Southwest while expanding its geographic footprint and customer base,” said Brooke Ablon, Partner at Fort Point Capital. “We are thankful to the LSO management team and employees for such a great effort and wish them continued success with Eagle Merchant Partners.”
During Fort Point’s ownership, the firm supported the company’s growth by adding several key members to the senior management team and board; created a business development program; launched a profitability enhancement project; and made investments in the company’s infrastructure, including a modernization of its fleet.
“Fort Point’s operating expertise and strategic oversight significantly helped enhance LSO’s profitability, cash flow and success. In addition, the transaction team worked closely with our team to evaluate new growth opportunities and optimize the company’s capital structure,” said Rick Jones, CEO of LSO.
Fort Point Capital invests from $5 million to $25 million in service-oriented, lower middle market companies across a range of sectors, including business services, healthcare, consumer, and software and information. Fort Point Capital is currently investing from FPC Small Cap Fund I. The firm is based in Boston (www.fortpointcapital.com).
MRL Capital (Stamford, CT) (no website found) and Pilgrim Capital (Fairfield, CT) (www.pilgrimcap.com) co-invested with Fort Point Capital in acquiring Lone Star Overnight in 2011.
The buyer of LSO, Eagle Merchant Partners, invests in companies with revenue between $20 million and $200 million and EBITDA between $5 million and $40 million. Sectors of interest include consumer, business services, and industrial. Eagle Merchant Partners is headquartered in Atlanta (www.eaglemerchantpartners.com).
BB&T Capital Markets served as financial advisor to Lone Star Overnight.
© 2014 PEPD • Private Equity’s Leading News Magazine • 4-25-14