G2 Served as Exclusive Sell-Side Advisor to Capital Express, Inc. on its sale to an affiliate of Red Dog Equity

G2 Served as Exclusive Sell-Side Advisor to Capital Express on its sale to Red Dog Equity

CLIENT
Founded in 1987 by Monte and Debra O’Hara, Capital Express, Inc. (“Capital Express” or the “Company”), is a leading provider of final mile and courier services.  The Company is headquartered in Omaha, Nebraska providing services across the Midwest region.  Capital Express has a premier customer base shipping products across resilient end markets that include healthcare / pharmaceutical, office supplies, e-commerce and other products that fit nicely into its conjunctive network.

SITUATION
After building the Company for over 35 years, developing significant density across nine states, and navigating recent headwinds of the COVID-19 environment, Monte and Debra felt it was time to evaluate strategic alternatives which included finding a partner to accelerate the execution of future growth initiatives.  

ENGAGEMENT
G2 Capital Advisors, LLC (“G2”) was engaged by Capital Express as the exclusive sell-side advisor to lead a highly targeted and efficient sale process focused on identifying a partner to recapitalize the business.   

OUTCOME
The transaction was successfully executed through a majority recapitalization of Capital Express by funds affiliated with Red Dog Equity LLC (“Red Dog”).  A combination of Capital Express and ADL Delivery will serve as Red Dog’s foundational platform investment in the final mile and courier segment operating across 45 locations in 15 states.  

Monte O’Hara, Founder and Chief Executive Officer of Capital Express said “I have spent my entire life building this business with the help of a fantastic management team who supported the execution of our strategic objectives and all of the great employees that have supported our network.  G2 had a clear vision of how to maximize optionality and find the optimal partner for Capital Express.  They were methodical with their approach and made sure that my team and I understood their rationale behind key strategies.  G2 brought a number of highly qualified partners to the table, and we are thrilled to partner with Red Dog and look forward to the acceleration, growth and development of Capital Express.” 

“Capital Express was built from the sheer grit and determination of Monte O’Hara, his amazing management team and dedicated employees.  We are grateful to be a small part of the Company’s journey which started with deliveries in one local market and has become a leading regional courier across nine states.  We are extremely proud of Monte and believe he has found a tremendous partner in Red Dog who embodies his values.  We are excited to track their progress and know there will be tremendous success in their collective futures.” said Christopher Casteleyn, G2 Managing Director of Transportation and Logistics.

About Capital Express, Inc.

Capital Express is a privately held provider of customized, final mile logistics services throughout the Central U.S.  The Company utilizes an asset-light platform with more than 25 locations across nine states to deliver healthcare, office supplies, e-commerce, and other product types to blue-chip clients.  www.capitalexpress.biz  

About Red Dog Equity LLC

Red Dog Equity LLC is a private equity firm that invests in lower middle-market companies poised for strong growth in partnership with driven, entrepreneurial business leaders (“Red Dogs”).  To learn more, please visit  www.reddogequity.com  

About G2 Capital Advisors, LLC
G2 Capital Advisors provides M&A, capital markets and restructuring advisory services to the middle market. We offer integrated, multi-product and sector-focused services by pairing highly experienced C-level executives with specialist investment bankers. We aspire to be the trusted advisor of choice to our clients including corporations and institutional investors.

CONTACTS ON THIS DEAL:

Chris Casteleyn: Managing Director, T&L: T: 415.531.3138 E: ccasteleyn@g2cap.com

Ben Wright: Chief Operating Officer, T: 619.972.3586 E: bwright@g2cap.com

Tess Sheidy: Senior Associate, T: 248.767.1283 E: tsheidy@g2cap.com

Matt Ball: Senior Associate, T: 978.914.4421 E: mball@g2cap.com

Noah Johnson: Senior Analyst, T: 717.598.8558 E: njohnson@g2cap.com