Trive Capital has made an investment in Iowa Northern Railway Company (IANR), a short line railroad operating 250 miles of track in eastern and northern Iowa. IANR serves regional customers in the grain, fertilizer and specialty chemical markets. The railroad was originally built in the 1870’s, and has been owned and operated by the Sabin family since 1994.
IANR’s main line track runs from Manly in north central Iowa though Waterloo and terminates in Cedar Rapids. The railroad also operates several branch lines that connect to the main track. Given its geographic location, IANR primarily serves customers in the corn and ethanol end markets. The company also provides transportation to customers in the agriculture, energy, and manufacturing sectors and offers support services to Class I railroads.
The investment by Trive backed a recapitalization of the business by IANR senior management which includes members of the Sabin family. “We are excited to partner with Trive”, said Dan Sabin, the president of IANR. “There is tremendous opportunity to drive economic development along the line, as well as to grow into new markets and service offerings. IANR chose to partner with Trive based on their collaborative, forward-thinking approach, flexibility and commitment to growth.”
IANR was formed in 1984 following the liquidation of the assets of the Chicago, Rock Island & Pacific Railroad Company. A group led by Dan Sabin took over management of the line in 1994. At that time the railroad handled 15,000 revenue cars annually and the average track speed was less than 10 mph. The railroad has invested millions in bringing the line up to a state of good repair while improving reliability and customer service, and currently handles approximately 60,000 revenue cars annually.
“Trive pursues investments in businesses that we believe exhibit long term strategic viability, and which have opportunity for transformational value creation,” said Chris Zugaro, a Partner at Trive. “We believe IANR meets these criteria, and has an exceptional team with a shared strategic vision.”
Trive Capital invests from $10 million to $60 million in North America headquartered companies with revenues of $30 million to $500 million. Sectors of interest include automotive & transportation; aerospace & defense; building products; construction & infrastructure; consumer goods; energy services; healthcare; manufacturing and industrials; chemicals; distribution; business & professional services; and communications. The firm was founded in 2012 by Conner Searcy, Managing Partner, and Chris Zugaro, Partner. Trive Capital is based in Dallas (www.trivecapital.com).
“IANR’s railroad is a strategic transportation asset within its region, delivering critical logistics service to manufacturers, chemical producers and multiple agricultural customers that have facilities along and near the line,” said David Stinnett, a Managing Director at Trive. “Our firm is eager to work with management to pursue additional growth avenues, invest in current and future assets, and support continuous improvement.”
IANR is headquartered in Cedar Rapids and also has offices, repair and maintenance shops and yard facilities in Manly, Greene, and Waterloo (www.iowanorthern.com).
© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-31-16
