Publicly-traded Strategic Environmental & Energy Resources (SEER) has completed the sale of its wholly-owned railcar cleaning division, Tactical Cleaning Company, to an investment group comprised of Rail Partners Management Group, Seneca Partners, and Uniprop.
The total consideration for Tactical Cleaning was $5 million as follows: $2.4 million of cash was paid at close; guaranteed payments totaling $1.1 million will be made over the next three years; and contingent payments of up to $1.5 million will be paid over the next three years based on the company’s operating performance.
Tactical Cleaning provides both fixed base and mobile railcar cleaning services to large and small rail car customers throughout North America. The company has locations in Denver, CO; El Dorado, KS; Danville, IL; Baltimore, MD; and Jersey Shore, PA. Under SEER ownership, Tactical Cleaning was headquartered in Denver but has been moved to Chicago.
“The Rail Partners team, in partnership with Seneca Partners and Uniprop, are very pleased that we were able to complete this transaction for Tactical,” said Tim Eklund of Rail Car Management. “Tactical and the Tactical team is a key piece of Rail Partners larger rail services platform strategy. We see tremendous opportunities to expand our relationships with existing Tactical customers and to develop new partnerships with rail car fleet owners throughout North America, both at our current locations, and at new Tactical locations on other rail-related acquisitions and investments we are pursuing.”
Rail Partners Management Group is a rail transportation investment, management and development company that acquires and invests across three rail industry segments: shortline/regional/industrial rail operations; rail-served transload/terminal/logistics operations; and rail equipment assets and services. The firm was founded by rail industry executives Tim Eklund, Craig Bargowski and Kevin Goins and has offices in Denver, Chicago and Springfield, MO.
“It was a pleasure to work with Rail Partners on what we expect will be the first of several rail industry focused transactions,” said Mike Skaff, Managing Director of Seneca. “Seneca is also pleased to expand its longstanding relationship with Uniprop and looks forward to growing Tactical at its existing fixed base locations and expanding its mobile presence.”
Seneca Partners is a middle market investment banking and private investing firm. Seneca makes majority or minority investments of $1 million to $20 million in US-based companies that have from $5 million to $100 million in revenue. Sectors of interest include manufacturing, healthcare and business services. The firm has offices in the Detroit suburb of Birmingham, MI and in Atlanta (www.senecapartners.com).
Uniprop is a family investment firm that focuses on real estate and private equity. The real estate portfolio consists of commercial and residential properties located in fourteen states. Private equity investments include portable storage container leasing, manufacturing companies for industrial parts and consumer goods. The firm was founded in 1974 by Paul Zlotoff and is headquartered in the Detroit suburb of Birmingham, MI (www.uniprop.com).
Strategic Environmental & Energy Resources provides waste management technologies and related services to companies primarily in the oil and gas, refining, landfill, food, beverage and agriculture, and renewable fuel industries in the United States and internationally. The company is based in Golden, CO (www.seer-corp.com).
© 2017 Private Equity Professional | September 8, 2017
