Fulcrum Capital sells A&B Rail to investor group led by TorQuest

Fulcrum Capital Partners has sold a majority interest in A&B Rail Services Ltd., a provider of rail maintenance, construction and related services, to a group of investors led by TorQuest Partners. Harris Williams & Co. acted as exclusive advisor to A&B Rail. The deal closed on Dec. 12.

Press Release

Harris Williams & Co., a preeminent middle market investment bank focused on the advisory needs of clients worldwide, announces the sale of a majority interest of A&B Rail Services Ltd. (A&B Rail), a provider of rail maintenance, construction and related services, to a group of investors led by TorQuest Partners (TorQuest), a leading Canadian-based manager of private equity funds. Harris Williams & Co. acted as the exclusive advisor to A&B Rail, a portfolio company of Fulcrum Capital Partners (Fulcrum). The transaction closed on December 12, 2013 and was led by Jason Bass, Joe Conner, Jeff Burkett and Wayne Harrington from Harris Williams & Co.’s Transportation & Logistics (T&L) Group.

“Over the past 48 years, A&B Rail has developed into the leading provider of critical railway infrastructure services in Canada. In partnership with Fulcrum, Paul Brum (President of A&B Rail) has built the best management team, employee base and service platform in the industry and A&B Rail has become the go-to-provider of critical services in one of the fastest growing, most dynamic rail markets in the world,” said Joe Conner, a director in Harris Williams & Co.’s T&L Group. “We appreciate having had the opportunity to help Paul and his team, who remain significant shareholders of the business, find the right partners to continue to build their business and deliver outstanding service to the market.”

“The sale of A&B Rail represents another marquee transaction for our practice in the rail sector, one of our core focus areas, and is evidence of continued interest across the rail industry and, specifically, outsourced rail maintenance services,” added Jason Bass, a managing director and co-head of the firm’s T&L Group. “Favorable market trends, including steady carload growth through increased truck-to-rail conversions, environmental considerations and increased outsourced maintenance, make the rail sector an attractive industry for investors.”

Based in Edmonton, Canada, A&B Rail is a full service railroad company specializing in track construction, railway maintenance, light rail transit and signals and communication. The company was founded in 1965 and has offices across Canada.

Fulcrum is a leading private investment management firm providing flexible private equity and mezzanine financing to Canadian middle market companies. The firm manages two private equity funds with $350 million in committed capital and a mezzanine finance business in excess of $400 million in committed capital.

Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements and capital markets advisory services.

Harris Williams & Co.’s T&L Group serves companies in a broad range of attractive niches, including rail products and services, third-party logistics (3PL); surface transportation; airport and aviation services; transportation equipment; and the automotive and heavy duty vehicle market. For more information on the T&L Group and other recent transactions, visit the T&L Group website.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.