Lone Star Overnight Completes Recapitalization
Fort Point Capital to Support Continued Growth and Expansion
May 3, 2011
Austin, TX — Fort Point Capital, a private equity firm that invests in small service-oriented companies, has made an investment in Lone Star Overnight, the leading regional package delivery service in Texas and its neighboring states.
The investment will enable Lone Star to continue its double-digit growth, driven by the Company’s regional footprint, which allows for unique service offerings, including later pickups and earlier deliveries, at lower prices than the national carriers. This has proven to be a winning combination for Lone Star’s small- and medium-sized business customers.
Following the recapitalization, Fort Point and its investment partners, MRL Capital and Pilgrim Capital, will own a majority interest in Lone Star. The senior management team, led by CEO Rick Jones, will continue to lead the business.
“Lone Star is pleased to complete this recapitalization to help launch our next phase of growth,” said Jones. “We are fortunate to be able to work with this group of high-quality investors. Their collective experience and track record of investing in service-oriented companies will allow us to carry out our long-term business plan and we know we can depend on our new investors to support future growth.”
“We are excited to partner with management and to provide the resources to help Lone Star expand its reach and continue its leadership position with small- and medium-sized businesses,” said Fort Point Partner Brooke Ablon. “The Company provides a critical service to its customers that cannot be met by the national carriers, and a service level that is unmatched in the industry. This fanatical focus on service, combined with our experience in logistics and distribution, makes Lone Star a terrific fit for Fort Point.”
About Lone Star Overnight
Since 1991, Lone Star Overnight has offered reliable, efficient package delivery service in Texas, Oklahoma, Western Louisiana, Eastern New Mexico, and Mexico. Lone Star offers a full range of next-day and day-definite time-guaranteed delivery options throughout its service area at rates significantly lower than the competition. Headquartered in Austin, Texas, the regional small parcel carrier’s dedicated employees, late pick-up times, early morning delivery options, and lower rates make Lone Star the high-service, high-value provider. For more information, please visit www.lso.com or call (800) 800-8984.
About Fort Point Capital
Fort Point Capital is a private equity firm that invests $5 to $25 million in growing, service-oriented, lower middle market companies across a range of sectors, including business services, healthcare, consumer, and software and information. The founders of Fort Point previously worked for leading middle market private equity firms including The Riverside Company and Great Hill Partners. For more information, please visit www.fortpointcapital.com.