TorQuest Partners has acquired Cando Rail Services, a provider of specialized rail support services that allow industrial customers to optimize their bulk material supply chain and connect to Class 1 railways.
Cando Rail Services provides a range of rail services, including industrial switching, material handling, logistics, terminal & transload services, mechanical services, railcar storage, and engineering & track services. The company’s services are used by its customers to optimize their bulk material supply chains at more than 25 locations across North America.
Cando was co-founded by Gord Peters and Rick Hammond in 1978 and has approximately 600 employees. The company is led by CEO Brian Cornick and is headquartered in Brandon, MB (www.candorail.com).
“The company is very well positioned to benefit from growing demand for first-mile/last-mile rail logistics solutions,” said Mr. Cornick. “We welcome TorQuest’s investment and look forward to leveraging our market leadership position with an enhanced balance sheet and deep access to capital, in order to deliver more services to more customers in more markets.”
“Since Cando was founded in 1978, it has built a very successful business, achieved tremendous growth, and solidified its leading position in the market,” said Jonathan Fraser of TorQuest. “We are pleased to have partnered with Cando’s employee shareholders and will work alongside them to help grow the company’s core business by continuing to leverage their strengths in operational performance, commitment to safety, and outstanding customer service.”
TorQuest was founded in 2002 and has over C$2 billion of equity capital under management. In July 2016 the firm held an above-target final closing of TorQuest Partners Fund IV at the fund’s hard cap of C$925 million. TorQuest is headquartered in Toronto (www.torquest.com).
“I am very proud of how far Cando has come, and this transaction marks the next stage of the company’s evolution,” said Mr. Peters, who will remain invested in the business, and a member of the Board of Directors. “TorQuest’s investment speaks volumes about the quality of Cando’s employees, assets, and operational capabilities. An important component of Cando’s success has been its focus on employee ownership and that program will continue.”
© 2018 Private Equity Professional | November 9, 2018