LSO is acquired by Eagle Merchant Partners

Affiliates of Eagle Merchant Partners, a private equity firm in Atlanta with a concentration southeast U.S.-based middle-market buyouts, acquired Austin, Texas-based LSO (Lone Star Overnight), a parcel delivery company.

By ·

Late last month, affiliates of Eagle Merchant Partners, a private equity firm in Atlanta with a concentration southeast U.S.-based middle-market buyouts, acquired Austin, Texas-based LSO (Lone Star Overnight), a parcel delivery company.

Eagle Merchant Partners said it invested roughly $20 million in equity for the LSO acquisition, coupled with support from institutional partners and family offices, as well as debt financing from NXT and New Canaan.

LSO serves thousands of customers daily and covers every address in Texas, Oklahoma, western Louisiana, southern New Mexico, and, through partnerships, California, the western U.S., and Mexico. LSO primarily functions as a regional small parcel delivery company with an integrated air, point-to-point mini-hub model. LSO also provides next-day and day-definite guaranteed services, with one of the industry’s highest reliability records and lowest damage rates.

The company is also active in e-commerce and is establishing strategic partnerships with many large companies in an effort to provide delivery services to various regions.

An Eagle Merchant Partners spokesman told LM that LSO was viewed as a good acquisition target, because it is an attractive company with good prospects, adding that the firm’s partners have logistics experience, coupled with liking the LSO team and the company’s upside.

“LSO does a first-rate job in terms of the costumer experience with one of the best reliability records and lowest damage rates in the industry,” the spokesman said. “We will continue the dedicated customer focus and service. We also plan to expand our offerings and service territory.”

Looking ahead, the spokesman said Eagle Merchant Partners is looking for acquisitions that will greatly expand the reach of LSO and will also make incremental investments in sales, technology, and channels down the road. For the time being, he said, it will be business as usual.

When asked what made LSO and the small parcel delivery market appealing to Eagle Merchant Partners, the spokesman said there are a few big names in the parcel delivery business but the firm felt LSO has a great territory and a strong brand, and more importantly that businesses and consumers will benefit from having more choices in the markets it serves.


About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

LSO · Parcel · All Topics
Latest Whitepaper
Logistics Network Analysis
Logistics network monitoring is an important step in understanding what actually occurs throughout your supply chain.
Download Today!
From the January 2018 Logistics Management Magazine Issue
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and the most successful shippers will be those that are able to mitigate their impact on profitability. And, the right technology will play an increasingly vital role in driving efficiencies across the global logistics network.
The Future of Retail Distribution
Navigating the Reverse Supply Chain for Connected Devices
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
IAM, IoT and the Connected Supply Chain
There are three primary models of Identity and Access Management (IAM) technology that CTOs, CSOs, and Supply Chain executives are using to enhance their trading partner communities. While each leverages IAM and the IoT as core components only an “Outside-in” approach truly connects people, systems and things reliably and securely across the supply chain.
Register Today!
EDITORS' PICKS
State of Global Logistics: Delivering above and beyond
Industry experts agree that costs across all sectors worldwide will continue to rise in 2018, and...
2018 Rate Outlook: Economic Expansion, Pushing Rates Skyward
Trade and transport analysts see rates rising across all modes in accordance with continued...

Building the NextGen Supply Chain: Keeping pace with the digital economy
Peerless Media’s 2017 Virtual Summit shows how creating a data-rich ecosystem can eliminate...
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...