Affiliates of Dallas-based PE firm Paceline Equity Partners has acquired Railway Equipment Leasing And Maintenance Inc., a Northfield-based lessor of railroad maintenance-of-way (MOW) equipment, along with its affiliated companies Acme Construction Co. Inc. and Timiny RR Construction Inc.
R.E.L.A.M.'s MOW services include an equipment fleet used to maintain critical railroad infrastructure along with complementary track maintenance services. The business will operate together with 1435 Rail Inc., a lessor of railroad MOW equipment, which was acquired by affiliates of Paceline last year. The R.E.L.A.M. brand will be adopted by the collective enterprise.
“It has been a pleasure getting to know the Paceline team, who shares a like-minded enthusiasm for the railroad industry and R.E.L.A.M,” R.E.L.A.M. owner David M. Horth said. “This business has been in my family for over 100 years and I am confident that R.E.L.A.M. will continue to build on its record of success and growth under Paceline. I'm looking forward to my next adventure, which will include continuing to work with the company through my role as an advisory board member."
Pursuant to the deal R.E.L.A.M.’s new CEO will be rail industry veteran John Roberts, who most recently served as president of Marmon Crane, a Berkshire Hathaway-owned company, and prior to that spent more than 20 years at Railserve, North America’s largest provider of in-plant railway services.
“This transaction brings together two dynamic players in the maintenance-of-way leasing market, allowing us to strategically expand our service offerings in the rental, leasing, and sales verticals,” Roberts said in a statement. “I am excited about the partnership with the Paceline team and I share their enthusiasm for the numerous benefits this transaction will bring to the Company’s customers, employees, and suppliers – most important of which is building on the unparalleled customer service that R.E.L.A.M. strives to provide.”
“R.E.L.A.M. is a highly strategic and complementary investment that will add to Paceline’s existing asset-rich platform in the railroad MOW space,” Paceline CEO Sam Loughlin said. “We look forward to partnering with the R.E.L.A.M. team to support the Company through its next stage of growth.” “Despite the current unprecedented macroeconomic backdrop, R.E.L.A.M. has demonstrated stable cash flows driven by non-discretionary maintenance and safety-related spending, making it a highly attractive and recession-resistant investment,” added Leigh Sansone, Chief Investment Officer of Paceline.