Rock Hill Capital Group has completed a majority recapitalization of Rail Service & Logistics, a railroad services provider involved in the removal and disposal of wooden railroad ties.
With the closing of the recapitalization of Rail Service & Logistics (RSL), the company then acquired the assets of Rail Tie Solutions (RTS) from Savage Transportation Management, an affiliate of Savage Companies. The acquisition of the new assets expands RSL’s capabilities and geographic coverage to include four grinding facilities and operations from the Mid-West through the Western United States. RSL is managed by Phil Rector, President, and Greg Smith, Vice-President, who have a combined 45 years in the railroad services and tie-to-biomass fuel business segment.
With the closing of the platform and add-on acquisition, RSL now specializes in the removal and disposal of wooden railroad ties as a part of the railroad industry’s annual maintenance programs. The company coordinates with railroad track maintenance teams to collect, catalog, and dispose of decommissioned railroad ties. RSL operates in Louisiana, Alabama, Nevada and Oregon. The company has four railroad tie grinding facilities and is headquartered in St. Louis (no website found)
“Greg and Phil are experienced entrepreneurs that fit our Rock Hill investment strategy. Both are well known within the industry with extensive customer relationships. We believe we can leverage the RSL management team to continue the growth of the current business and expand our business model to include other services for RSL’s customer base,” said James Wilson, Managing Director of Rock Hill.
Rock Hill Capital Group invests in small-to-lower middle market companies with enterprise values up to $75 million and EBITDA of less than $10 million that are located in the South and Southeast regions of the US. Sectors of interest include industrial and energy services and value-added distribution. Rock Hill has over $140 million of committed capital under management through Rock Hill Capital I, LP and Rock Hill Capital II, LP. The firm was founded in 2008 and is based in Houston (www.rockhillcap.com).
“We were excited to find a partner that believed in our strategy of expanding our business and service lines and that could support our acquisition of the RTS assets. With Rock Hill’s support and our expanded capabilities, we believe we can grow RSL into a premier provider of rail services,” said Mr. Smith.
Debt financing for the transaction was provided by IBERIABANK (www.iberiabank.com).
2014 PEPD • Private Equity’s Leading News Magazine • 10-9-14
