Press Releases
Posted May 9, 2011

Lone Star Overnight Has Been Acquired by an Investment Group

Business Services
Transaction Type
Mergers & Acquisitions
Austin, Texas

HOUSTON, May 9, 2011 – GulfStar Group(“GulfStar”) is pleased to announce the sale of Lone Star Overnight (“LSO” or the “Company”) to an investor group including Fort Point Capital, MRL Capital and Pilgrim Capital Partners (the “Buyers”). Praesidian Capital provided one-stop debt financing in support of the transaction. GulfStar Group served as exclusive financial advisor to LSO throughout the transaction, which closed on April 28, 2011.

Lone Star Overnight is the leading independent intra-regional express and ground parcel delivery company serving the Southwest U.S. The Company’s service area covers Texas, Oklahoma and select contiguous cities in Arkansas, Louisiana and New Mexico. LSO offers customers a compelling value proposition driven by personalized customer service, later pickups, earlier deliveries and industry-leading on-time delivery rates at prices substantially lower than those offered by larger national competitors. LSO was founded in 1991 and is headquartered in Austin, Texas.

The GulfStar transaction team was led by Managing Director Bryan Frederickson and Senior Vice President Joseph Watt. “We are extremely pleased to have had the opportunity to work with LSO,” said Bryan Frederickson. “The Lone Star management team has built a tremendous platform with a growing market presence and developed a sound model for future expansion. This transaction enables continued pursuit by LSO of its available opportunities.”

LSO Chief Executive Officer Rick Jones commented, “We are excited to start this new chapter at LSO and were very pleased and impressed with the seamless transaction GulfStar helped direct. The flawless execution of our acquisition by our new investor group allows LSO to continue its focus on providing great service to its customers without distraction and gives LSO an exciting platform for future growth and service offerings.”

About the Buyers
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. Fort Point is dedicated to value enhancing partnerships and seeks to provide capital, know-how and expertise to promising companies with enterprise values between $10 million and $50 million.

MRL Capital is a Stamford, Conn., based private equity firm that focuses on control transactions in the lower middle market. The firm’s partners have extensive investing experience in the business services, consumer products, healthcare and media sectors. The firm seeks to invest between $5 million and $25 million in companies based in the U.S. or Canada having enterprise values of up to $100 million.

Pilgrim Capital Partners is a private equity firm focused on investing in management led buyouts, change of ownership and growth capital investments. The firm targets established and profitable companies in the lower middle market with a focus on the light manufacturing, value-added distribution and business service sectors. It seeks to invest between $3 million and $20 million in companies having enterprise values and revenues between $10 million and $100 million, and EBITDA between $2 million and $10 million. Pilgrim Capital Partners was founded in 2006 and is based in Fairfield, Conn.

About GulfStar
GulfStar Group is a leading middle market investment and merchant bank headquartered in Houston, Texas. The firm specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, restructuring and turnaround advisory services and general corporate financial advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed more than 475 assignments across a variety of industries. Through its merchant banking affiliate, the firm also makes equity and subordinated debt co-investments.

GulfStar Group
700 Louisiana Street
Suite 3800
Houston, Texas 77002


    Join our distribution list