M&A Deal Summary

Eagle Merchant Partners and Petra Capital Partners Acquire LSO

On April 24, 2014, private equity firms Eagle Merchant Partners and Petra Capital Partners acquired transportation company LSO from Pilgrim Capital Partners, Fort Point Capital, New Canaan Funding and Praesidian Capital

Acquisition Highlights
  • This is Eagle Merchant Partners’ 1st and Petra Capital Partners’ 2nd transaction in the Transportation sector.
  • This is Eagle Merchant Partners’ 2nd and Petra Capital Partners’ 31st transaction in the United States.
  • This is Eagle Merchant Partners’ 2nd and Petra Capital Partners’ 9th transaction in Texas.
Investment Fate
  • LSO was sold to a consortium of financial buyers in 2021.

M&A Deal Summary

Date 2014-04-24
Target LSO
Sector Transportation
Buyer(s) Eagle Merchant Partners
Petra Capital Partners
Sellers(s) Pilgrim Capital Partners
Fort Point Capital
New Canaan Funding
Praesidian Capital
Deal Type Secondary Buyout
Advisor(s) BB&T Capital Markets (Financial)

Target

LSO

Austin, Texas, United States
website
LSO is a provider of parcel delivery services throughout the Southern United States. LSO offers its clients overnight, expedited ground, same-day, and last-mile logistics solutions. LSO was founded in 1991 and is based in Austin, Texas.

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Buyer(S) 2

Buyer

Eagle Merchant Partners

Atlanta, Georgia, United States

Investor

website


Category Private Equity Firm
Founded 2013
PE ASSETS 265M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Eagle Merchant Partners focused on investing in US-based middle-market consumer, business services, and industrial companies. The Firm targets companies with revenue between $20 and $200 million and EBITDA between $2 and $20 million. Eagle Merchant Partners is based in Atlanta, Georgia.


DEAL STATS #
Overall 2 of 12
Sector (Transportation) 1 of 1
Type (Secondary Buyout) 1 of 1
State (Texas) 2 of 3
Country (United States) 2 of 12
Year (2014) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-12-16 Square 1 Restaurants

Irving, Texas, United States

Square 1 Restaurants is a company committed to delivering Food. It is a Dairy Queen franchisee in the United States and holds exclusive development rights within the Dallas / Ft. Worth metroplex. Square 1 Restaurants is based in Irving, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-05-04 Chicken Salad Chick

Auburn, Alabama, United States

Chicken Salad Chick is a fast-casual chain of chicken restaurants with 137 locations throughout 16 states predominantly in the Southeast. The company's restaurants feature over a dozen distinct chicken salad flavors made fresh daily and served by the scoop, sandwich or bowl. Chicken Salad Chick was formed in 2008 and is based in Auburn, Alabama.

Buy -
Buyer

Petra Capital Partners

Nashville, Tennessee, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1996
PE ASSETS 400M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Petra Capital Partners is a private investment firm that invests in US-based, high-growth businesses operating in the business services, healthcare services, media/publishing, telecom, IT, and information services sectors. Target companies are generally cash-flow positive with revenues in excess of $10 million and growth rates above 20%. Petra can commit up to $20 million per transaction. The Firm typically invests in subordinated debentures with warrants to purchase equity securities. Petra Capital Partners is licensed as a SBIC. The Firm was formed in 1996 and is based in Nashville, Tennessee.


DEAL STATS #
Overall 31 of 54
Sector (Transportation) 2 of 2
Type (Secondary Buyout) 1 of 2
State (Texas) 9 of 15
Country (United States) 31 of 54
Year (2014) 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-31 PostUp Digital

Austin, Texas, United States

PostUp Digital LLC is a provider of email and audience development solutions for media and publishing brands. PostUp delivers personalized communications that drive engagement and increase revenues. PostUp Digital LLC was founded in 1996 and is based in Austin, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-07-07 NuView Systems

Andover, Massachusetts, United States

NuView Systems, Inc. is a provider of HR & Payroll software tools that leverage technology to enable business strategy through its advanced HR technology, helping organizations manage people, process & strategy across the enterprise, on a global basis.

Sell -

Seller(S) 4

SELLER

Pilgrim Capital Partners

Fairfield, Connecticut, United States

website


Category Private Equity Firm
Founded 2006
Size Small
Type Sector Agnostic
DESCRIPTION

Pilgrim Capital Partners is a private equity firm that invests in change of ownership and growth equity transactions. Pilgrim looks for established, middle-market companies operating in defensible markets. Prospective companies generally have sales of $10 to $100 million and operating profits of at least $2 million. Pilgrim has a preference for East Coast and Midwest-based opportunities, however the Firm will consider investments nationwide. Pilgrim Capital Partners was formed in 2006 and is based in Fairfield, Connecticut.


DEAL STATS #
Overall 12 of 14
Sector (Transportation) 1 of 1
Type (Secondary Buyout) 9 of 9
State (Texas) 2 of 2
Country (United States) 12 of 14
Year (2014) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-09-30 AZEK

Chicago, Illinois, United States

AZEK is a manufacturer of beautiful, low-maintenance residential and commercial building products, and is committed to accelerating the use of recyclable materials. The company is completely focused on leveraging our expertise in materials science and its customer-centric approach to engineer and manufacture the most beautiful, most sustainable building products to improve the lives and businesses of our customers. AZEK is based in Chicago, Illinois.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-09-02 Controlled Products Systems Group

Denver, New Mexico, United States

Controlled Products Systems Group, Inc. is a provider of perimeter access control and gate automation security systems. The company operates out of 15 strategically located warehouses across the U.S. and maintains the most comprehensive product line in the industry. CPSG is widely recognized as the industry leader in product knowledge and technical support with the largest and most knowledgeable team of security specialists.

Sell -
SELLER

Fort Point Capital

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

website


Category Growth Capital Firm
Founded 2009
Size Small
Type Sector Agnostic
DESCRIPTION

Fort Point Capital is a private investment firm that targets smaller middle-market growth company investments. The Firm specifically looks for partnerships where firm expertise can help businesses realize their 'potential'. Sectors of interest include business services, healthcare, consumer, and software and information. Fort Point Capital was formed in 2009 and has offices in Boston and New York City.


DEAL STATS #
Overall 1 of 6
Sector (Transportation) 1 of 2
Type (Secondary Buyout) 1 of 4
State (Texas) 1 of 3
Country (United States) 1 of 6
Year (2014) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-04-21 Van Pool

Wilbraham, Massachusetts, United States

Van Pool is a best-in-class provider of transportation services for special needs and homeless students in Massachusetts, Connecticut, and New Hampshire. Van Pool was founded in 1980 and is based in Wilbraham, Massachusetts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-08 Sullivans

Sioux Falls, South Dakota, United States

Sullivans is a designer and distributor of seasonal and all-occasion home décor products that are sold principally to independent and specialty channel retail customers in the U.S. The Company's primary product lines include holiday and celebration decorations, permanent floral and foliage products, home décor items and accessories. Sullivans was founded in 1968 and is based in Sioux Falls, South Dakota.

Buy -
SELLER

New Canaan Funding

New Canaan, Connecticut, United States

website


Category Mezzanine Finance Firm
Founded 1995
PE ASSETS 238M USD
Size Small
Type Sector Agnostic
DESCRIPTION

New Canaan Funding is a middle-market mezzanine finance firm. New Canaan looks to provide subordinated debt to help fund acquisitions, recapitalizations and growth financings. New Canaan invests $3 to $20 million per transaction with an EBITDA of $3 million. New Canaan Funding was formed in 1995 and has offices in New Canaan, Connecticut and Wheaton, Illinois.


DEAL STATS #
Overall 26 of 36
Sector (Transportation) 1 of 1
Type (Secondary Buyout) 10 of 16
State (Texas) 3 of 4
Country (United States) 25 of 35
Year (2014) 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-01-22 Stronghaven

Atlanta, Georgia, United States

Stronghaven, Inc. is a corrugated packaging company. Stronghaven has four operating units (Advanced Design & Packaging, K&G Box, Highland Containers and Stronghaven Containers), each of which provides high-quality packaging solutions to its customers.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-06-12 EnviroVac Holdings

Savannah, Georgia, United States

EnviroVac Holdings LLC is a provider of mission-critical cleaning and maintenance services to blue-chip customers. EnviroVac provides general industrial, chemical cleaning, environmental, digital inspections, fluid treatment and automated cleaning solutions to the power & utilities, pulp & paper, chemical, steel and manufacturing end industries. EnviroVac Holdings LLC was established in 1998 and is headquartered in Savannah, Georgia.

Buy -
SELLER

Praesidian Capital

Oklahoma City, New York, United States

Investor Investor Investor Investor Investor

website


Category Mezzanine Finance Firm
Founded 2002
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Praesidian Capital is a mezzanine debt provider for middle-market companies throughout the US and Europe. Praesidian looks to provide junior capital to businesses with revenues between $3 and $100 million and EBITDA between $250k and $20 million. Capital is typically used to support acquisitions, management/leveraged buyouts, recapitalizations, and restructurings. Praesidian will not invest in oil & gas exploration, financial services, real estate, or start-ups. Praesidian Capital was formed in 2002 and is based in New York City.


DEAL STATS #
Overall 7 of 29
Sector (Transportation) 1 of 1
Type (Secondary Buyout) 2 of 13
State (Texas) 2 of 4
Country (United States) 7 of 27
Year (2014) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-07-31 John’s Incredible Pizza

Rancho Santa Margarita, California, United States

John’s Incredible Pizza offers a selection of pizza and accompanying foods in specialty environments and “Fun Worlds” that offer complete family entertainment for all ages. Based in Rancho Santa Margarita in Southern California, each of John’s 10 facilities average around 47,000 square feet.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-09-17 Redeem

Bathgate, United Kingdom

Redeem is a provider of electronic equipment recycling and re-commerce solutions for mobile network operators, wholesalers, retailers, charities, and direct consumers in the United Kingdom and internationally. Redeem was founded in 1999 and is based in Bathgate, United Kingdom.

Buy -