Harris Williams Advises Appalachian Railcar Services, LLC on its Sale to Cathcart Rail, LLC

Rhea-AI Summary

Harris Williams advised Appalachian Railcar Services (ARS) on its sale to Cathcart Rail and Star America Infrastructure Partners. ARS, one of the largest U.S. railcar repair companies, offers a variety of services, including certified tank and freight car repairs and railcar storage. The CEO praised Harris Williams for their expertise. Cathcart Rail seeks growth through mechanical partnerships and acquisitions. Star America focuses on infrastructure projects, managing over €27.2 billion in assets.

Positive

• ARS is one of the largest railcar repair companies in the U.S.
• Cathcart Rail is in growth mode, seeking acquisitions and partnerships.
• Strong investor interest in ARS indicates solid market positioning.

Negative

• None.

Harris Williams, a global investment bank specializing in M&A advisory services, announces it advised Appalachian Railcar Services, LLC (ARS), a portfolio company of GenNx360 Capital Partners (GenNx360), on its sale to Cathcart Rail, LLC (Cathcart) and its financial partner, Star America Infrastructure Partners, LLC (together with its related persons, Star America). 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; various interior and exterior cleaning, coating and lining services; mobile repair; on-site customer repair operations; switching operations; and railcar storage. The transaction was led by Frank Mountcastle, Jeff Burkett and Trey Balson of the Harris Williams Transportation & Logistics (T&L) Group.

“ARS CEO Scott Driggers and the rest of the management team have grown the company into an impressive platform in the railcar repair services sector,” said Jeff Burkett, a director at Harris Williams. “We believe ARS is one of the most trusted and reliable railcar service providers in the country, and we are excited to see how the company will advance in partnership with Cathcart in the coming years. The sale of ARS adds to our transportation infrastructure practice and specifically our rail services experience.”

“ARS is recognized within the rail industry as providing best-in-class services to a diverse client base,” said Frank Mountcastle, a managing director at Harris Williams. “There is strong investor interest in high-quality assets like ARS, and we believe ARS has found an excellent partner in Cathcart. We look forward to watching the partnership thrive.”

Scott Driggers, CEO at ARS, said, “Harris Williams’ expertise advising rail services companies and their familiarity with the buyer landscape made them the ideal partner for this transaction. We are grateful for their guidance and believe all parties enjoyed a tremendous outcome.”

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; various interior and exterior 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, West Virginia, the company operates under a management team with over 150 years of industry experience.

GenNx360 is a private equity firm focused on investing in middle market business services and industrial companies. GenNx360 partners with companies having proven and sustainable business models in expanding industries, with the objective of implementing and supporting value-enhancing organic and inorganic initiatives to accelerate growth, deliver efficiencies and generate strong financial returns. Target industries include packaging; 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; and aerospace and defense. GenNx360 was founded in 2006 and is headquartered in New York City.

Cathcart is a diversified freight rail platform operating across both the services and transportation sectors. Cathcart is currently in growth mode and actively seeking mechanical partnerships with short-line railroads and acquisitions of rail and rail-related businesses. Cathcart was founded in 2015 by the father and son team of Thomas Cathcart and Casey Cathcart and now employs nearly 800 people across 60 locations in 22 states.

Star America, a subsidiary of Tikehau Capital, a European listed alternative asset management and investment group with €27.2 billion of assets under management (as at 30 September 2020) and shareholder equity of €2.8 billion (as at 30 June 2020), is a U.S. headquartered developer and manager of infrastructure assets in North America. With an investor base that includes large institutional investors such as insurance companies and pension funds, among others, Star America focuses on delivering infrastructure projects primarily across the transportation, social, environmental and telecommunications sectors. Star America’s mission is to become the preferred partner in rebuilding America’s infrastructure.

Harris Williams, an investment bank specializing in M&A advisory services, advocates for sellers and buyers of companies worldwide through critical milestones and provides thoughtful advice during the lives of their businesses. By collaborating as one firm across Industry Groups and geographies, the firm helps its clients achieve outcomes that support their objectives and strategically create value. Harris Williams is committed to execution excellence and to building enduring, valued relationships that are based on mutual trust. Harris Williams is a subsidiary of the PNC Financial Services Group, Inc. (NYSE: PNC).

The Harris Williams T&L Group serves companies in a broad range of attractive niches, including automotive and heavy duty vehicle, transportation equipment, third-party logistics (3PL), and truck, rail, marine and air transportation. For more information on the firm’s T&L Group and other recent transactions, visit the T&L Group’s section of the Harris Williams website.

Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. Corporate Finance Advisors GmbH is registered in the commercial register of the local court of Frankfurt am Main, Germany, under HRB 107540. The registered address is Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany (email address: hwgermany@harriswilliams.com). Geschäftsführer/Directors: Jeffery H. Perkins, Paul Poggi. (VAT No. DE321666994). Harris Williams is a trade name under which Harris Williams LLC, Harris Williams & Co. Ltd and Harris Williams & Co. Corporate Finance Advisors GmbH conduct business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201215005866/en/

FAQ

What company did Harris Williams advise on its recent sale?

Harris Williams advised Appalachian Railcar Services on its sale to Cathcart Rail.

What services does Appalachian Railcar Services provide?

Appalachian Railcar Services provides railcar repair, cleaning, coating, mobile repair, and railcar storage.

Who were the financial partners involved in the sale of ARS?

The financial partners involved in the sale were Cathcart Rail and Star America Infrastructure Partners.

What is the focus of Star America Infrastructure Partners?

Star America focuses on infrastructure projects across transportation, social, environmental, and telecommunications sectors.

What growth strategy does Cathcart Rail have?

Cathcart Rail is actively seeking mechanical partnerships with short-line railroads and acquisitions of rail-related businesses.