GenNx360 sells Appalachian Railcar Services

GenNx360 Capital Partners has sold Appalachian Railcar Services to Cathcart Rail.

GenNx360 Capital Partners has sold Appalachian Railcar Services to Cathcart Rail. No financial terms were disclosed. Harris Williams & Co. served as financial advisor to ARS on this transaction. ARS is a railcar repair company.

PRESS RELEASE

NEW YORK, Dec. 15, 2020 /PRNewswire/ — GenNx360 Capital Partners (“GenNx360”), a New York-based private equity firm, today announced the successful sale of its portfolio company, Appalachian Railcar Services (“ARS” or “the Company”), to Cathcart Rail (“Cathcart”).

GenNx360 invested in ARS in March 2017 as part of a sector focused, proactive sourcing strategy targeting investments in the railcar services sector. Over the past three years, GenNx360, in partnership with management, transformed ARS into a highly strategic industry leader through a number of initiatives that drove revenue and margin growth. Key accomplishments include significantly enhancing the leadership team, implementing a network-wide commercial strategy, driving improved operational efficiencies, improving the management information systems and controls, expanding facility capabilities, and integrating four disparate business units into an industry-leading network of facilities providing best-in-class customer service and quality across every facility.

“We’re very proud of what management and GenNx360 have accomplished. The ARS investment represents a great example of our core capabilities including proven proactive sourcing, driving growth and profitability through operational and commercial enhancements, and building industry leading companies,” said Monty Yort, the GenNx360 Managing Partner who led the transaction.

“I am very pleased with the team we have built and, together, we have established ARS as a highly attractive, strategic participant in the rail sector. We have enjoyed a strong working relationship with GenNx360, and they have been an outstanding partner in supporting our transformation of ARS,” said Scott Driggers, Chief Executive Officer of ARS.

“We acknowledge the effort and resources GenNx360 contributed to ARS and are excited to integrate the Company and team in to Cathcart. We are looking forward to building upon the strong platform that GenNx360 helped create,” said Casey Cathcart, Executive Chairman of Cathcart.

Morrison Cohen acted as legal counsel to ARS and GenNx360. Harris Williams & Co. served as the exclusive financial advisor to ARS on this transaction.

About GenNx360 Capital Partners
GenNx360 Capital Partners is a private equity firm focused on acquiring middle market business services and industrial 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, and generate strong financial returns. Target industries include industrial machinery and components, logistics and supply chain solutions, industrial and environmental services, food and agricultural products and services, 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 about GenNx360, visit www.gennx360.com.

About Appalachian Railcar Services
ARS is one of the largest railcar repair companies in the U.S., providing a range of industrial logistics services including certified tank and freight car repair, railcar cleaning, coating and lining services, mobile repair, on-site customer repair operations, switching operations, and railcar storage. ARS serves numerous Fortune 500 companies across multiple industries, including agriculture, chemicals, manufacturing, energy, food processing, and logistics throughout the Midwest, Southeast, and Mid-Atlantic regions. Founded in 2000 and headquartered in Eleanor, WV, the Company operates under a management team with over 150 years of industry experience. For more about ARS, visit www.apprailcar.com.