Riverside Steams Ahead with Add-On to Railroad Platform April 14, 2008
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Acquisition is the 10th for Private Equity Firm in 2008
(April 14, 2008) – The Riverside Company’s acquisition train keeps chugging ahead in 2008. The private equity firm’s 10th acquisition of the year, Central Power Products, Inc. (“Shuttlewagon”), came aboard with its engine stoked to run. Shuttlewagon is an add-on to Nordco, Riverside’s platform company serving North American railroads.
Shuttlewagon, an innovative manufacturer of railcar movers, is the third add-on to Nordco, a leading designer and provider of new and rebuilt Maintenance-of-Way equipment, repair parts and services for North American railroads. Based in Grandview, Missouri, Shuttlewagon is one of only three manufacturers of railcar movers in the United States, and is the only one to use rubber tires for traction instead of steel wheels. Rubber tires offer a significant competitive advantage and benefit customers by allowing the railcar mover to pull more railcars than comparably sized movers using steel wheel technology. This enables customers to move both fully loaded and empty railcars more effectively and causes less wear and tear than the steel-wheel design.
Shuttlewagon customers include North American Class I railroads as well as those in several large industrial markets that rely heavily on rail transportation, including agriculture, metals, chemicals and energy. The company’s broad customer base complements Nordco’s customers and allows for additional cross-selling opportunities.
“We were very impressed with Shuttlewagon’s technology leadership and quality reputation that make the company a natural strategic addition to Nordco,” said Tim Gosline, Riverside Partner. “The add-on opens additional sales channels for Nordco and provides an opportunity to help develop the repair parts and used equipment rebuild capabilities for Shuttlewagon at the same time. Nordco’s success with the integration of earlier add-ons has laid the ‘tracks’ for what we see as a very smooth integration.”
“We have worked closely with the Riverside team to grow Nordco into the strongly positioned company it is today,” said Bruce Boczkiewicz, Nordco President and Chief Executive Officer. “With Riverside’s help, we have improved operational efficiencies, diversified our product offerings and built on our 80-year history. We are very pleased to welcome Shuttlewagon, a company with a strong reputation and drive for quality and innovation, to Nordco as the newest addition to our family.”
Working with Gosline on the Riverside team were Chip Walker, Principal, and Karim Botros, Senior Associate. The deal was sourced by James Butterfield, Riverside Principal, Origination. The deal was financed by GE Commercial Finance and Allied Capital via their co-managed Unitranche Fund LLC.
The Riverside Company
The Riverside Company is the largest global private equity firm focused on the smaller end of the middle market (“SEMM”) and is one of the industry’s most experienced leveraged buyout investors. Riverside specializes in investing in premier SEMM companies (those with enterprise values of up to $150 million) and partners with strong management teams to build companies through acquisitions and value-added growth. Since 1988, the firm has invested in 186 transactions with a total enterprise value of $3.4 billion. Its current portfolio in the U.S., Europe and Asia numbers 62, with combined annual sales of $3 billion, EBITDA of $428 million and more than 11,000 employees. Riverside offers the resources to complete acquisitions smoothly and in as little as 30 days – thanks to its sizeable pool of capital under management (nearly $2 billion in nine funds), over 150 professionals in 17 offices (Amsterdam, Atlanta, Budapest, Brussels, Chicago, Cleveland, Dallas, Los Angeles, Madrid, Munich, New York, Prague, San Francisco, Seoul, Stockholm, Tokyo and Warsaw), and long-standing relationships with partner lenders. Five of seven of the firm’s mature vintages are currently top quartile, and the firm’s investors include the world’s leading pension funds, endowments, funds-of-funds, insurance companies and banks. Please visit www.riversidecompany.com and www.riversideeurope.com for more information.
Central Power Products, Inc.
Central Power Products, Inc. has been an industry leader in the railcar mover business for more than 20 years. Company founder John Ying has driven a focused strategy to build the highest quality, most technology-advanced railcar movers in the industry. The railcar movers, with the brand name Shuttlewagon, use rubber tires to provide superior traction and a cushioned drive system that protects vital drivetrain components from excessive wear and tear. Find more information at www.shuttlewagon.com.
Nordco is the leading designer, manufacturer, and rebuilder of railroad Maintenance-of-Way equipment in North America. The Company provides complete, targeted solutions that make it possible for the railroad industry to build, improve, maintain, and inspect its track infrastructure. It serves the North American Class I railroads, regional and short-line railroads, public transit systems, contractors, equipment leasing companies, rail mills, and others. Please visit www.nordco.com for more information.