Target: Fleetgistics Holdings Inc.
Price: $80 million
Seller: Atlantic Street Capital Management LLC
Sponsor: Harbour Group
The deal is Atlantic Street’s first exit and a huge winner, generating 7.7x the Stamford, Conn.-based firm’s $10.4 million equity investment and an internal rate of return of 156 percent, according to a press release Atlantic Street issued just before deadline.
Fleetgistics has three divisions: Medifleet, which provides same-day delivery services to hospitals, laboratories and other medical-related institutions; Partsfleet, which delivers automotive parts and other supplies; and Scriptfleet, which provides delivery services for long-term care pharmacies. The investment began for Atlantic Street Capital in June 2007, when the firm bought Ace Expediters, an Orlando-based courier company that later became Fleetgistics with the acquisitions of two other courier companies: Express Courier Systems Inc., a West Haven, Conn.-based company, in April 2008, and Network Express Inc., a Clearwater, Fla.-based company, in March 2009. Today that company operates in more than 80 cities and 30 states.
Atlantic Street Capital has been investing from a $45 million pool of capital provided by
Managing Partner Peter Shabecoff, a lawyer and former partner at Greenwich, Conn.-based mid-market buyout shop
The firm has two other portfolio companies: Double B Foods, a DeSoto, Texas-based maker of meat snacks and frozen food it bought in 2006; and EZE Trucking Inc., a Rialto, Calif.-based company it bought in April 2009 that helps deliver cranes and other heavy products used in the infrastructure industry.