Satellite Logistics Group
Houston, TX
Industrial Services (Transportation & Logistics)
Entrepreneur Recapitalization
June 2010
Exited in November 2013
Leading provider of non-asset based reverse logistics solutions to the beer and beverage industry.
Satellite’s founding entrepreneur was seeking a partner to help accelerate the Company’s growth. MPE’s Investment Professionals emerged as management’s preferred partner due to their company-building approach and value-adding Executive Council relationships.
MPE’s Investment Professionals worked with management to diversify the company and position it for accelerated growth. In late 2014, Satellite was sold to management’s preferred partner, a strategic buyer which could help facilitate the company’s international expansion during its next phase of growth.
  • Attractive end markets with compelling outsourcing value proposition and high switching barriers
  • Market leadership with unmatched route density, well-developed transportation and warehousing networks, and efficient and proprietary IT systems
  • Asset-light business model generates significant and stable free cash flow
  • Recruited experienced VP of Business Development to formulate dedicated sales and marketing strategy
  • Leveraged Executive Council expertise, including a former executive at United Parcel Service and an executive with multiple CEO positions
  • Aligned interests with entrepreneur through a significant rollover investment and created a management stock option plan
  • Developed formal sales and marketing strategy as part of Satellite’s first strategic planning process
  • Continued revenue diversification through penetration of growing craft and Mexican import beer segments
  • Expanded product offering to include keg leasing and enhanced forward logistics services
  • Entered new end markets including wine-on-tap and handling of mobile assets
  • Recruited experienced Head of Operations to optimize supply chain and distribution footprint
  • Optimized supply chain to improve network and distribution costs
  • Invested in IT to create customer and internal reporting capabilities and upgrade proprietary transportation portal
  • Prudent financial leverage allowed for significant debt paydown as well as a dividend recapitalization
  • Improved financial planning and analysis by refining annual budgeting process and creating KPIs by service offering
  • Developed tracking tools to monitor opportunity pipeline and sales funnel