GE Transportation To Buy RMI from Carlyle

The Carlyle Group said Wednesday that it has agreed to sell RMI, a rail software and services provider, to GE Transportation. Financial terms weren’t disclosed. The deal is expected to close in early 2012.

PRESS RELEASE

Global alternative asset manager The Carlyle Group today announced that it has agreed to sell rail software and services provider RMI to GE Transportation. Carlyle’s U.S. Growth Partners III acquired a majority stake in RMI in 2007. Financial terms of the transaction were not disclosed. The transaction is expected to close in early 2012.

Carlyle Managing Director Steve Bailey said, “Through the deep rail knowledge of its dedicated employees and its sophisticated software solutions, RMI maintains a relentless focus on helping its customers operate more efficiently and solve complex challenges. We have been gratified to support the efforts of Pete Kleifgen and his team as they have worked to serve customers better by expanding RMI’s products and services capabilities through organic investment and a series of complementary acquisitions. We wish them continued success with GE Transportation.”

During Carlyle’s ownership, RMI achieved significant growth through organic market expansion and acquisition. With Carlyle’s assistance, RMI closed and successfully integrated three acquisitions, which brought significant product expansion and employees with deep rail domain knowledge to RMI to better serve its customers. These acquired product platforms of Oasis, RailDOCS and ExpressYard all opened up new growth markets. The ‘One Carlyle’ network with its global reach and transportation expertise helped RMI management as they entered markets outside North America and into important adjacent sectors.

Founded in 1979, RMI is a provider of transportation management software solutions for railroads, rail shippers, railcar leasing companies and intermodal services in North America. RMI’s software helps its users improve efficiency and productivity while reducing costs.

Pete Kleifgen, Chairman and CEO of RMI, said, “Carlyle’s knowledge of the transportation sector, as well as its global network, helped us to grow our business. They have been a valuable partner since 2007 in helping us take our dedicated customer focus and sophisticated suite of services to other market segments in the U.S. and abroad.”

Capital for the 2007 transaction came from Carlyle’s U.S. Growth Partners III, a $605 million fund that makes control and minority investments in lower middle market companies with significant unrealized growth potential, both in the United States and internationally.

The Carlyle Group was advised by Evercore Partners and Latham & Watkins.
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About RMI
RMI is the largest independent provider of Transportation Management Software and comprehensive information services to railroad industry. Founded in 1979, RMI leverages in-depth knowledge of rail operations, intermodal terminal operating systems, and multi-modal transportation management to provide Software as a Service and licensed solutions to railroads and industrial shippers.  RMI’s software is used to manage rail and intermodal operations, signal and communication assets, railcar repair billing and inventory, and multi-modal visibility, planning, and execution for industrial shippers and logistics service providers.  RMI is a portfolio company of The Carlyle Group.  For more information about RMI software and services please visit www.rmiondemand.com.

About The Carlyle Group
The Carlyle Group is a global alternative asset manager with more than $153 billion of assets under management across 86 funds and 49 fund of fund vehicles as of June 30, 2011. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has developed expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,100 people in 34 offices across six continents.