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04/23/2014 Eagle Merchant Partners Acquires Leading Parcel Company LSO

ATLANTA, GA — Affiliates of Eagle Merchant Partners (EMP), an Atlanta, Ga.— based private equity firm focused on middle-market buyouts in the Southeastern United States, have acquired LSO (formerly known as Lone Star Overnight), an Austin, Texasbased regional small parcel and same-day delivery solution provider.

This is the second deal for EMP following the acquisition of Vasari, the second largest Dairy Queen franchise in the United States in late 2013. EMP is well versed in logistics, as its partners were involved in the acquisition, development and successful sale of 3PD, a lastmile heavy goods delivery company, and remain involved in the ongoing management of PODS, the category creator and leader of portable storage and moving. The firm invested approximately $20 million in equity for the LSO acquisition with support from well-known institutional partners and family offices. NXT and New Canaan provided debt financing for the deal.

With a service area covering every address in Texas, Oklahoma, western Louisiana, southern New Mexico and, through partnerships, California, the western U.S. and Mexico, LSO is a fast-growing regional small parcel delivery company operating an integrated ground and air, point-to-point mini-hub model. Serving thousands of customers daily, it also has many ecommerce customers and is actively forging strategic partnerships with several large ecommerce companies to provide delivery services in the region.

“LSO is a rapidly growing company with a strong management team. The company has distinct advantages in better service, lower damage rates and, usually better pricing,” said Ransom James, Partner, EMP. “We are excited to invest in the people, the fleet and new delivery channels.”

LSO offers a full range of next-day and day-definite guaranteed deliveries and has one of the highest reliability records and lowest damage rates in the industry. Extended pick-up times, early morning delivery options and competitive rates make LSO a high-service, highvalue shipping provider.

“LSO is excited to partner with EMP to grow the business in our current markets and to expand both our channels and coverage areas,” said Rick Jones, CEO of LSO. “EMP brings logistics expertise and capital to the table, and we are already planning new growth avenues.”

The company has developed a solid client base while focusing on niche markets including industrial products, distributors, energy, specialty pharmaceuticals, wine, e-commerce and many others. There is opportunity for additional growth by expanding LSO’s existing market and putting more resources into sales and marketing efforts as well as through EMP’s interest in acquiring similar businesses in adjacent markets.

About Eagle Merchant Partners

Eagle Merchant Partners is an Atlanta, Ga.-based private equity firm focused on middle market companies in the consumer, business services and industrial sectors in the Southeastern United States. The partnership is one of the most experienced private equity investors in the region having spent nearly a decade with Arcapita managing 20 portfolio companies with more than $2 billion in revenues. For more information, visit www.eaglemerchantpartners.com.

About Lone Star Overnight

LSO, a leading regional small package carrier founded in 1991, has one of the highest reliability records and lowest damage rates in the industry. Headquartered in Austin, Texas, LSO offers a full range of next-day, day-definite guaranteed deliveries. Extended pick-up times, early morning delivery options and competitive rates make LSO the high-service, high-value shipping provider. LSO’s service area covers Texas, Oklahoma, western Louisiana, southern New Mexico and, through partnerships, California, the western US and Mexico. Unlike other carriers, LSO ships packages point-to-point and doesn’t use conveyor belts that can damage shipments. Fewer miles and hand-offs mean packages arrive on time and in great shape. LSO also provides live customer support and flexible shipping solutions to help businesses grow more customers, more revenue and seize new opportunities. For more information, visit www.lso.com or call 1-800-800-8984.