Hilltop launches American Track Services

Hilltop Private Capital has formed American Track Services after acquiring American Track Generations and C.J. Bridges Railroad Contractor. No financial terms were disclosed. American Track Services will provide rail inspection, maintenance, repair, design and construction services mostly to private installations including industrial, municipal, and logistics sites throughout the southern U.S.


October 31, 2016. // Hilltop Private Capital (“Hilltop”), a New York-based private equity firm investing in lower middle market companies, today announced the creation of American Track Services through its investments in American Track Generations (“ATG”) and C.J. Bridges Railroad Contractor (“CJB”) (together, the “Company” or “ATS”). The combination creates a leading provider of a range of rail inspection, maintenance, repair, and design and construction services, primarily to private installations including industrial, municipal, and logistics sites throughout the southern United States. American Track Services will initially operate out of facilities in Fort Worth, TX, Mulberry, FL and Tulsa, OK. Existing shareholders of ATG and CJB remain as substantial investors in the Company and will continue to manage the business. Additional capital providers include PNC Mezzanine Capital and Deerpath Capital Management. Other terms of the transactions were not disclosed. RR Mergers and Acquisitions advised CJB and Generational Equity advised ATG on these transactions.

“The combination of these two great companies creates a platform with the geographic breadth, diverse capabilities, and engineering sophistication to provide private track users of any size with a suite of services focused on their unique needs. We are excited to begin the process of bringing these combined capabilities to the market,” said Bill Bush, President and CEO of American Track Services. “The ever increasing regulatory and safety needs for users of private track require service providers with the experience, sophistication and scale ATS will provide,” echoed Jerry Bridges, President of CJB.

The transactions represent the first two investments for Hilltop, which was formed earlier this year by private equity veterans Drew Shea and Kate Lehman. As part of its investment strategy, Hilltop engages in pro-active sector research in the business and industrial products and services sectors to identify areas of opportunity. The attractive dynamics of this segment of the rail services market uncovered by Hilltop, coupled with the significant value created through the combination of the businesses, put ATS squarely within Hilltop’s investment focus.

“The track maintenance industry is a sector we have been studying for some time, and we are thrilled to see those efforts result in a platform of this magnitude and quality. We are excited about what we believe is a very attractive opportunity for further industry consolidation and geographic and service offering expansion,” said Drew Shea. Kate Lehman added, “We are pleased to be partnering with the Bush family and Jerry Bridges, longtime participants in this industry. They have developed teams with industry-leading experience and strong customer relationships and service offerings, and we look forward to continuing to grow the Company into the future together.”

About Hilltop Private Capital
Hilltop Private Capital is a private equity firm focused on making control-oriented and significant minority investments in business and industrial products and services companies in the lower middle market, typically with revenues between $10 – $150 million. Hilltop is dedicated to combining tailored operational resources, flexible transaction structures, and long-term value creation with investor access and alignment. The firm’s strategy is to take a hands-on approach to investing and to build collaborative relationships with managers of businesses at a growth or ownership inflection point. Hilltop was founded in 2016 and is headquartered in New York City.  For more information, visit www.hilltopprivatecapital.com

About American Track Generations
ATG is a Texas-based company that specializes in the design and construction, inspection, repair, and maintenance of railroad track, predominantly for private users. ATG was founded in 2007 by members of the Bush family, all rail services industry veterans. For more information, visit www.atgcontractor.com

About C.J. Bridges Railroad Contractor
CJB is a Florida-based company that specializes in the inspection, repair, maintenance, design, and construction of railroad track, predominantly for private users. Specialized services include rail welding, signal installation and maintenance, grade work, road crossing, and commercial asphalt maintenance. CJB was founded in 1978 by members of the Bridges family, all rail services industry veterans. For more information, visit www.cjbridges.com.