GenNx360 Capital Partners has made an investment in Appalachian Railcar Services Inc. The deal was sourced in partnership with FourFront Strategies LLC. Bundy Group advised ARS on the transaction. Headquartered in Eleanor, West Virginia, ARS is a provider of railcar repair, railcar storage, plant loading and unloading, and short line switching operations.
NEW YORK, March 2, 2017 /PRNewswire/ — 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