In April of this year, 3i Infrastructure PLC (3i) consummated a purchase of Regional Rail Holdings LLC (Regional Rail), a decision supported with buy-side work conducted by R.L. Banks & Associates, Inc. (RLBA).
Rob Collins, managing partner, 3i North American Infrastructure, said: “This is an exciting opportunity to partner with an established management team as we seek to put additional capital to work in North American rail infrastructure.”
RLBA was engaged by 3i Infrastructure to perform the necessary due diligence work associated with the then potential acquisition of Regional Rail. Comprising five, core, operating entities, Regional Rail represented a diverse and complicated set of assets, including 155 miles of track across three, separate railroads and multiple, disconnected track segments serving 70 customers. Further assets included a truck-to-train transload facility and, unusually, a national grade-crossing signal company, Diamondback Signal LLC.
To conduct the evaluation, RLBA: 1) reviewed historical revenue and expense performance against RLBA’s proprietary database of industry trends; 2) produced pro forma revenue and expense projections; 3) partook in interviews of the railroad’s management team and 4) conducted several on-site inspections to assess both commercial opportunities and the physical condition of the property.
As evidence of the typical care and expertise employed by RLBA in such potentially sensitive evaluations, all parties were very satisfied with the end result. Al Sauer, CEO of Regional Rail said at the time of sale that “[Regional Rail looks] forward to working with 3i as we continue to focus on servicing our existing customers, growing economic development in our local communities, and expanding into new regions through strategic partnerships and acquisitions. We see tremendous opportunity in the sector and are proud to have the support and asset management expertise of 3i behind us.“
RLBA is an industry leader in rail industry transaction evaluations and valuations, one of the most trusted and experienced names in rail consulting, having appraised more than $3 billion worth of rolling stock and tens of thousands of miles of railroad right-of-way and track assets as part of providing both buy-side and sell-side assistance.