Levine Leichtman Capital Partners has sold Regional Rail to 3i Group plc. No financial terms were disclosed. Headquartered in Kennett Square, Pennsylvania, Regional Rail is an operator of short line railroads and rail-related businesses in the mid-Atlantic region of the U.S.
LOS ANGELES — Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today that it has completed the sale of Regional Rail, LLC (“Regional Rail” or the “Company”) to 3i Group plc (“3i”).
Formed in 2007, Regional Rail is a leading operator of short line railroads and rail-related businesses in the mid-Atlantic region of the United States with over 155 miles of track connecting into a diversified Class 1 railroad network. Regional Rail services a broad range of end-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.
Lauren Leichtman, Founding Partner and Co-Chairperson of the Executive Committee of LLCP, said, “The Regional Rail investment has been very successful for both LLCP and the Company’s management team. We are proud to have enhanced the value of Regional Rail through multiple avenues including winning new customers, acquiring additional track miles and optimizing service levels and operations. We wish the management team continued success.”
Al Sauer, CEO of Regional Rail, commented, “We have truly enjoyed our partnership with the team at LLCP, who helped support our growth initiatives. We will truly miss working with them but are excited to enter our next phase of growth under 3i.”
BMO Capital Markets served as financial advisor and Honigman Miller Schwartz and Cohn LLP served as legal advisor to Regional Rail in connection with the sale.
For more information, visit https://www.llcp.com.
About Levine Leichtman Capital Partners
LLCP is a Los Angeles, California based private investment firm that has managed approximately $10.5 billion of institutional capital since its inception. LLCP invests in middle market companies located in the United States, the United Kingdom and Europe. LLCP is currently making new investments through Levine Leichtman Capital Partners VI, L.P., Levine Leichtman Capital Partners Europe II SCSp, LLCP Lower Middle Market Fund, L.P. and Levine Leichtman Strategic Capital, LLC. LLCP has offices in Los Angeles, New York, Dallas, Chicago, Charlotte, London, Stockholm and The Hague.