Substantial Growth Through Strategic Acquisitions
Portfolio Company: Regional Rail LLC
Industry: Transportation / Logistics
Situation: In 2007, FC Crestone was approached by an experienced railroad management team to acquire a short-line railroad platform, East Penn Railroad. The seller was highly motivated looking to sell the business in a very short time period. FC Crestone completed due diligence within a truncated time period meeting the Seller’s requirements and provided 100% of the acquisition capital.
FC Crestone Value Add: FC Crestone worked closely with the Regional Rail management team to transform the business through:
- Partnering with a talented management team to drive operational improvements and growth initiatives
- Completing a recapitalization providing liquidity and flexibility to support the business plan
- Rationalizing the business by divesting non-core, underperforming business lines generating excess cash
- Strategically growing Regional Rail through five (5) acquisitions
Outcome: After eight years of substantial EBITDA growth from operational improvements and add-on acquisitions, FC Crestone sold Regional Rail to a growth oriented financial buyer.