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Seacoast Capital invests $20m in Lone Star Overnight

Seacoast invested through subordinated debt and preferred equity to take a minority position, refinance a portion of the company's debt and support growth.

Seacoast Capital invested $20 million in Lone Star Overnight, a parcel delivery company based in Austin, Texas. Seacoast invested through subordinated debt and preferred equity to take a minority position, refinance a portion of the company’s debt and support growth.

Press Release

Seacoast Capital (“Seacoast”), a lower middle market non-control growth capital investor, announced today its investment in Lone Star Overnight (“LSO” “Lone Star” or “the Company”). Seacoast invested $20 million in subordinated debt and preferred equity in LSO to buyout a minority shareholder, refinance a portion of its current indebtedness, and support the near-term growth of the business.

Lone Star Overnight is headquartered in Austin, Texas, and, over the last 30 years, has become a leading regional parcel delivery company. LSO has a network of 27 operating locations throughout the Southwest and Central regions. LSO offers three core services: express overnight delivery, ground delivery, and e-commerce delivery for customers operating in both B-to-B and B-to-C market segments.

We are pleased to have an industry experienced investor, such as Seacoast, who will help us get to the next level.

Said Dick Metzler, CEO of Lone Star, “We are pleased to have an industry experienced investor who will help us get to the next level. Our entire team is excited to work alongside Seacoast to jointly build our business.”

Tom Gorman, a Partner with Seacoast Capital, stated “We were excited about the LSO opportunity right from the beginning—the Company’s competitive differentiation in a growing market, the commitment and vision of the management team, and the opportunity to expand are all important criteria we look for in an investment at Seacoast.” Added Alan Rich, a Vice President at Seacoast, “LSO is benefitting from substantial tailwinds in the last-mile segment, and management has successfully transformed the business to capitalize on these macro trends. The Company is well-positioned with the processes, people, and infrastructure in place to achieve its goals. We are excited to grow the business together with the LSO management team.”

Finally, Jonathan Britva, a Principal with Republic Partners, the investment bank that represented LSO in this capital raise, said “We are thrilled to have advised LSO on their growth financing from Seacoast Capital. Seacoast separated themselves and proved to be the right partner for LSO due to their flexible mandate and strong experience in the e-commerce and small parcel markets. We look forward to watching LSO as it continues to scale its business and reach new heights.”

About Seacoast Capital
Founded in 1994, with offices in Boston, MA and San Francisco, CA, Seacoast Capital invests non-control growth capital in partnership with management in lower middle market companies. Seacoast is industry agnostic and typically invests $5 million to $25 million of capital in companies with $10 million or more in revenue and $2 million or more of EBITDA. Capital is used to support growth, acquisitions, family wealth and ownership transfers, shareholder liquidity events, refinancings, and partnership or management buyouts. Geographically, Seacoast invests anywhere in the United States. Since its inception, Seacoast has managed over $600 million of capital, which the firm has invested in 82 non-controlling transactions. Now managing its fourth fund, Seacoast Capital Partners IV, L.P., the firm continues to actively seek new investment opportunities. Learn more by visiting www.seacoastcapital.com.