DFW Capital’s portfolio company North American Rail Solutions, through its subsidiary, American Track, has acquired West Rail Construction.
American Track is a provider of inspection, maintenance, repair and specialized construction services for railroad infrastructure operating at industrial, municipal, and logistics sites. Customers of the company are active in the manufacturing, petrochemical, mining, agricultural products, food and beverage sectors as well as in the operation of ports and transload facilities across the United States.
American Track was formed in 2016 through a consolidation of two family businesses – Texas-based American Track Generations and Florida-based C.J. Bridges Railroad Contractor – in partnership with Hilltop Private Capital, Deerpath Capital and PNC Mezzanine.
In April 2020, American Track acquired Savage Industrial Rail Services, a provider of track inspection, maintenance and repair services with locations in Denver and Salt Lake City; and in February 2021, American Track acquired Dirtworks Rail of the Carolinas, a North Carolina-based provider of rail construction and maintenance services to industrial and shortline railroads located in the southeastern United States.
In December 2021, American Track was acquired by DFW Capital from Hilltop Private Capital. DFW’s first add-on for American Track was Pennsylvania-based The Railroad Associates Corporation (TRAC) in March 2022. A year later, in April 2023, American Track acquired Edmonton-based Universal Rail Systems and created a new parent company, North American Rail Solutions.
West Rail Construction is American Track’s latest add-on acquisition. The Washington-headquartered company, led by President Mike Sands, is a provider of rail maintenance and construction services to Northwest-based ports, forestry, chemicals, energy, and waste industries.
“We are happy to join the American Track team,” said Mr. Sands. “American Track will provide our operations with an essential injection of capital, operational support and reach needed to take our business to the next level. This is the right thing for us and our employees to provide the growth trajectory we were looking for in the Northwest.”
“The Northwest United States is an important territory for American Track and West Rail Construction is the premier rail service provider and operator in that geography,” said Thomas Lucario, CEO of North American Rail. “We could not be more exited to add Mike Sands and his team to the American Track family. We are certain that West Rail will help American Track grow and further our goals of expanding national coverage capabilities for our multi-site customers.”
Today, Fort Worth, Texas-headquartered North American Rail Solutions and American Track, operate 25 full-service offices located in the United States and Canada, that provide safety, compliance, and operability services to onsite railway assets at ports, transload facilities, transit, class one and short-line railroads.
DFW Capital invests in service companies, with an emphasis on outsourced business and industrial support services, and healthcare companies that have revenues of up to $200 million and EBITDA up to $20 million. In January 2023, DFW held a final, oversubscribed, and hardcap close of DFW Capital Partners VII LP with $800 million of capital. Fund VII follows the firm’s sixth fund which held its first and final closing in April 2019 with $500 million of capital. DFW is headquartered in Teaneck, New Jersey, with an additional office in Chevy Chase, Maryland.
© 2024 Private Equity Professional | March 6, 2024
