Industrial Services (Transportation & Logistics)
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.
Original Investment Thesis
- 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
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