Toronto, ON; December 12, 2013 – TorQuest Partners, in partnership with a group of co-investors, today announced that it has acquired a majority interest in A&B Rail Services Ltd., a market-leading national railway services company based in Edmonton, Alberta. Financial terms of the transaction were not disclosed.
Founded in 1965, A&B Rail is a leading supplier of railway maintenance, new track construction, rehabilitation and emergency services on main and secondary lines. It also provides highly specialized track services as well as light rail transit (LRT) construction, maintenance, signals and communication support. A&B Rail has approximately 600 employees and operations in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario. For more information about A&B Rail, visit www.abrail.com.
TorQuest and its co-investors acquired the majority interest in A&B Rail from Fulcrum Capital Partners. A&B Rail’s President Paul Brum and all members of the senior management team will continue to hold a significant equity interest in the company.
Eric Berke, Managing Partner at TorQuest, said, “A&B Rail has established a leading position in the critical rail services area. We look forward to working with Paul and the company’s highly experienced management team to continue its aggressive growth in these markets across Canada.”
A&B Rail will be the second investment of TorQuest Fund III, a $535 million fund that closed in September 2013.
“This is an exciting development for A&B Rail, our employees and customers”, said Mr. Brum. “We are moving forward with a group of investors that see tremendous opportunity in railway services in North America. TorQuest brings financial strength, business and governance expertise, and a commitment to continued profitable growth, both organically and through acquisitions. They share our vision of A&B Rail becoming a North American leader in safety, quality and performance by investing in our people and maintaining a sharp focus on superior customer service.”
Alan Lever, Partner at TorQuest, said, “There are a number of macro factors supporting substantial growth in the Canadian rail industry. We believe A&B Rail is very well positioned to take advantage of this trend and deliver strong, sustainable growth over the coming years.”
TorQuest will augment the company’s board of directors with specific skills and experience in finance, business development (national and international), Class I rail track and signals, rail construction, track and signal maintenance, railway operations, general contracting, engineering and infrastructure development. There will be no changes to the company’s day-to-day operations as a result of this transaction.
About TorQuest Partners
Founded in 2002, TorQuest Partners is a leading Canadian-based manager of private equity funds. With more than C$1 billion of equity capital under management TorQuest seeks investments in middle market and later stage companies with the goal of building value through opportune acquisitions, strategic leadership and the timely use of financial expertise. For more information about TorQuest Partners please visit www.torquest.com.
Media enquiries should be directed to David Ryan, Longview Communications, 416-649-8007.Categories: News