Fort Point Capital Completes Sale of Lone Star Overnight to Eagle Merchant Partners
Sale marks the first portfolio realization for Fort Point Capital
April 24, 2014
Fort Point Capital, a private equity firm focused on lower middle-market, service-oriented investments, announced today that it, together with its partners, MRL Capital and Pilgrim Capital, has completed the sale of Lone Star Holdings LLC (“LSO” or the “Company”) to Eagle Merchant Partners, a private equity firm investing in middle market businesses in the Southeast United States.
Headquartered in Austin, TX, LSO is a leading regional provider of overnight parcel delivery service in the Southwest United States.
Since its investment in 2011, Fort Point Capital actively supported the Company’s growth initiatives via the addition of several key members of the senior management team and board, a robust business development program, a profitability enhancement project and investments in the Company’s infrastructure, including a modernization of the fleet and related equipment.
Brooke Ablon, Partner at Fort Point Capital and a board member of LSO, said, “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. We are thankful to the LSO management team and employees for such a great effort and wish them continued success with Eagle Merchant Partners.”
Rick Jones, CEO of LSO, added, “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.”
The sale of LSO marks the first portfolio realization for Fort Point which was founded in 2010.
BB&T Capital Markets served as financial advisor to LSO.
About Fort Point Capital
Based in Boston, Massachusetts, Fort Point Capital is a private equity firm that invests in lower middle market, service-oriented companies in partnership with strong management teams. Fort Point Capital is currently investing from FPC Small Cap Fund I. Please contact Fort Point at (617) 303-2121 or www.fortpointcapital.com.