Fulcrum Capital Partners has completed the sale of its majority interest in A&B Rail Services to a group of investors led by TorQuest Partners. Fulcrum first invested in A&B Rail Services in June 2008.
A&B Rail Services provides track maintenance, repair, rehabilitation, construction and additional services for Class I railways, industrial companies, municipalities and short line railways. The company also provides specialized track services as well as light rail transit construction, maintenance, signals and communication support. A&B is headquartered in Edmonton (www.abrail.com).
During the course of its ownership of A&B, the company realized growth in revenue and earnings from a combination of expanded service lines including light rail transit, signals, communication, civil and rail component manufacturing, and via two strategic acquisitions.
Fulcrum Capital Partners manages over C$750 million of capital and invests both equity and subordinated debt in companies with revenues of C$10 million to C$250 million. Sectors of interest include services, manufacturing, consumer products, distribution, food and retail. Fulcrum Capital Partners’ Fund III has made 11 investments and the sale of A&B Rail represents the sixth fully realized investment in that fund. The firm has offices in Vancouver and Toronto (www.fulcrumcapital.ca).
TorQuest Partners makes equity investments of C$15 million to C$100 million in companies with enterprise values of C$40 million to C$250 million that are located in Canada and the US. The firm invests in a range of industries but has a particular interest in manufacturing, business services, financial services, food, consumer products and specialty chemicals. TorQuest was founded in 2002 and has over C$1 billion of equity capital under management. The firm is headquartered in Toronto (www.torquest.com).
Investment bank Harris Williams & Co. acted as the exclusive advisor to A&B Rail Services.
© 2013 PEPD • Private Equity’s Leading News Magazine • 12-13-13