Atlantic Street Capital has sold mailing services business Fleetgistics, netting the lower middle-market private equity firm an impressive 7.7 times return on its $10.4m investment.
The sale to St Louis-based investment firm Harbour Group yielded Atlantic an internal rate of return of 156 per cent.
Fleetgistics was formed following Atlantic’s acquisition of Ace Expediters Inc in 2007 and subsequent acquisitions of Express Courier Systems Inc and Network Express Inc to create an expanded same-day logistics company.
Today, Fleetgistics operates in over 80 cities and 30 states via its operating divisions Partsfleet, Medifleet, and Scriptfleet.
Peter Shabecoff, managing partner of Atlantic, said, “We acquired a small, entrepreneurial business with limited infrastructure and during a two-and-a-half-year period built a leading business in the same-day logistics services sector by developing its operational capabilities, enhancing the company’s technology and successfully completing two strategic acquisitions to create a market leader.”
Atlantic invests in companies that it sees as presenting challenges to typical investors.
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