railroad services

TorQuest Invests in Cando Rail Services

by

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

Rock Hill Buys Rail Service & Logistics, Adds on RTS

by

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