Levine Leichtman Capital Partners has completed the acquisition of Regional Rail, an operator of short line railroads and rail-related businesses in the U.S. Levine Leichtman partnered with management on the acquisition. The company is the fifth investment from Levine Leichtman Capital Partners SBIC Fund.
Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today that it has partnered with management to complete the acquisition of Regional Rail, LLC (“Regional Rail” or the “Company”). Regional Rail is a leading operator of short line railroads and rail-related businesses in the United States.
Formed in 2007, Regional Rail acquired several short line railroads in the mid-Atlantic region serving a broad range of customers in markets including agriculture, lumber, energy and metal products. The Company’s wholly owned subsidiary, Diamondback Signal, provides engineering, construction and maintenance for highway rail crossings throughout the United States. Regional Rail is headquartered in Kennett Square, PA.
Regional Rail is the fifth investment from Levine Leichtman Capital Partners SBIC Fund, L.P. According to Lauren Leichtman, Co-Founder and CEO of LLCP, “We are excited to partner with Bob Parker, Al Sauer and the rest of the management team who have assembled very strategic assets serving the logistics needs of a diverse set of customers throughout the region. These railroad veterans have done a great job acquiring undermanaged railroad assets and improving the operational performance to create value.”
Regional Rail’s management team will retain significant ownership and will continue to lead the Company. Regarding the transaction, Bob Parker commented, “Having a partner with a long history of successfully investing in operating entrepreneurs to execute their growth strategy was key to us in selecting our new financial partner. LLCP’s resources and experience will be invaluable as we move into our next phase of growth.”
About Levine Leichtman Capital Partners
LLCP is a Los Angeles, California, based private investment firm that has managed approximately $7.0 billion of institutional capital since its inception. LLCP invests in middle market companies located in the United States and Europe. LLCP invests its capital through private equity partnerships and various debt and leveraged loan funds. LLCP is currently making new investments through Levine Leichtman Capital Partners V, L.P., Levine Leichtman Capital Partners SBIC Fund, L.P., Levine Leichtman Capital Partners Private Capital Solutions, L.P., Levine Leichtman Capital Partners Europe, L.P. and LLCP Co-Investment Fund, L.P. LLCP has offices in Los Angeles, New York, Dallas, Chicago, London and The Hague. For further information please see http://www.llcp.com.