New York, New York. March 2, 2017 – GenNx360 Capital Partners (“GenNx360”), a New York-based private equity firm investing in middle market companies, today announced its investment in Appalachian Railcar Services, Inc. (“ARS” or the “Company”). ARS provides railcar repair, railcar storage, plant loading and unloading, and short line switching operations at 47 locations across 18 states. It serves a well-diversified customer base covering multiple industries, including agriculture, chemicals, manufacturing, energy, food processing, and rail logistics. In addition, several of ARS’ railcar repair locations are also certified tank car repair locations. The transaction represents the eighth platform investment for GenNx360’s Fund II. The transaction was sourced in partnership with FourFront Strategies, LLC, a Chicago-based firm. Bundy Group served as exclusive advisor to ARS and its shareholders in the sale process. Terms of the transaction were not disclosed.
“We are looking forward to working closely with ARS management to further accelerate the growth ARS has enjoyed. We are confident that the combination of ARS’ strong and well-established brand and GenNx360’s knowledge in the industry will help them to expand the service offering to their customers,” said Monty Yort, the Managing Partner at GenNx360 who led the transaction.
“The entire ARS management team is excited to be partnering with GenNx360”, said Kurt Higginbotham, President and CEO. “This represents a new chapter for ARS and will allow us to accelerate a number of growth programs already in progress. Joining a company with the operational expertise and capabilities of GenNx360 additionally opens up many possibilities for improvement and growth.”
About GenNx360 Capital Partners
GenNx360 Capital Partners is a private equity firm focused on acquiring middle market industrial and business services companies. We invest in companies with proven and sustainable business models in expanding industries with the objective of implementing the required operating changes to deliver cost efficiencies, accelerate growth, generate strong financial returns, and preserve capital regardless of market cycles. Target industries include industrial machinery and components, logistics and supply chain solutions, industrial and environmental services, food and agricultural, infrastructure equipment and services, specialty chemicals, packaging, and aerospace and defense. GenNx360 was founded in
2006 and is headquartered in New York City. For more information about GenNx360, please visit: www.gennx360.com
About Appalachian Railcar Services
Appalachian Railcar Services is one of the largest railcar repair companies in the U.S. providing an extensive range of industrial logistics services, including tank and general railcar repair, rail logistics, plant loading and unloading, short line switching operations, and railcar storage, throughout the mid-Atlantic, Northeast and Midwest regions. ARS is also one of the largest providers of railcar storage in the U.S. with over 12,000 car spots. In addition, several of ARS’ railcar repair locations are also certified tank car repair locations. ARS’s client list boasts of numerous Fortune 500 companies spread across multiple industries, including agriculture, chemicals, manufacturing, energy, food processing, and logistics. Founded in 2000 and headquartered in Eleanor, West Virginia, the Company has expanded into a national footprint across 47 facilities in 18 states, has over 400 employees and the management team has over 100 years of industry experience. For more information about Appalachian Railcar Services, visit: www.apprailcar.com
About FourFront Strategies, LLC:
FourFront Strategies, LLC is a Chicago-based firm that leverages deep rail industry knowledge to identify and develop actionable investment opportunities within various industrial sectors. For more information about FourFront Strategies, visit: www.fourfrontstrategies.com
For media inquiries about this press release, please contact:
GenNx360 Capital Partners
Carmen Rojas, Investor Relations Manager
Tel: +1 212.257.6772
Appalachian Railcar Services’ facility in Kingsport, Tennessee, is in the process of converting to a certified tank car facility.
As of July 1st, Kingsport is operating under Appalachian Tank Car Services (ATC). Application for M-1002 certification will be sent August 2016.
The Kingsport facility currently has a fully operational paint and blast facility.Read More
Appalachian Railcar Services, Inc. Announces Acquisition of FreightCar America’s Railcar Repair and Maintenance Services Business
ELEANOR, WV, SEPTEMBER 30, 2015 — Appalachian Railcar Services, Inc. (“ARS”) announced today that its wholly-owned subsidiary, ARS Nebraska, LLC, has acquired all of FreightCar America, Inc.’s railcar repair and maintenance services business.
ARS’ President and Chief Executive Officer, Kurt Higginbotham, said, “The acquisition of FreightCar America’s railcar repair and maintenance services business is a great moment in our company’s history. By bringing these FCA operations into our portfolio, we will greatly expand our customer base and open up tremendous opportunities for the future.”
This latest acquisition by ARS further solidifies ARS’s aggressive growth plans. In December of 2014, ARS acquired BRC Rail Car Service Company based in Lynchburg, VA, which enabled the company to participate in the tank car service industry. With the addition of FCA, ARS will be adding 125 employees, 5 physical locations, 22 miles of rail, a 5-mile short line operation, and direct connections with the Burlington Northern Sante Fe Railroad and the Union Pacific Railroad. Since 2000, ARS has grown from a single service rail operation in West Virginia only to a multi-service rail enterprise offering services in 15 states. Services include railcar repair and maintenance, coal loading and unloading, train handling, industrial switching, trans-loading, railcar storage, and buying, selling and leasing of railcars.
Steptoe & Johnson PLLC served as ARS’ legal counsel on the transaction.Read More
ARS recently entered into an agreement with a Class 1 railroad to transload coil covers for railcars.
The covers are off-loaded from truck to temporary storage at ARS’ Warren, Ohio, facility, where they will be stored until later this year, awaiting arrival of coil cars.
There will be over 700 cars that will cycle through this operation.
This transloading operation is another example of the diversity of services that ARS can offer.
Thanks to all who participated in the coordination of this operation and making it a successful venture.Read More
ELEANOR, W.Va. (AP) – Appalachian Railcar Services (ARS) recently acquired BRC Rail Car Services of Lynchburg Virginia. BRC will operate under a new division (Appalachian Tank Car) which was established for this acquisition.
With the addition of BRC Rail Car Services, ARS will double its size to more than 300 employees. An additional 100 employees are expected to be hired over the next three years. Appalachian Railcar Services was founded in the year 2000 and now has thirty-four (34) operations in fourteen (14) states. ARS provides maintenance/repair, storage, industrial switching and other rail-related services to a variety of industries.
Founded in 1972, BRC Rail Services is headquartered in Lynchburg, Virginia and has repair facilities located in Hinton, West Virginia and Elk Mills, Maryland. The three locations process 1,500 rail cars annually. BRC specializes in providing repair, cleaning and interior/exterior coating services primarily for industrial tank cars.Read More
ARS is proud to announce the latest services to be added to the company’s railcar maintenance capabilities at the Kingsport, TN facility. ARS can now offer exterior coatings for various freight cars, hoppers and gondolas.
Equipment includes a BCP Wheelabrator blast booth with full recovery system, BCP Wheelabrator downdraft climate controlled paint booth and cure booth.
The shop is served by both Norfolk Southern and CSX Class 1 railroads.
Please click here to contact ARS sales staff for further inquiries or information.Read More