TCF Railco Acquisition Corp is to acquire the operating assets of ABC-NACO for US$75m, subject to assumption of certain liabilities and the receipt of regulatory approval. The assets include ABC-NACO’s US Rail Products, Track Products and Rail Services units, and the stock of its European subsidiaries and Chinese joint ventures. The Canadian and Mexican subsidiaries of the Rail Products Group are not included in the sale. ABC-NACO and its US subsidiaries had voluntarily filed for reorganisation on October 18, under Chapter 11 of the USbankruptcy code.
’ABC-NACO concluded that the TCF offer was the highest or otherwise best submitted’, said President & CEO Vaughn W Makary. ’We believe TCF will bring financial stability to the company’.
TCF is owned by Three Cities Funds III, LP and affiliates. Partner Willem de Vogel said ’we plan to provide financial and other resources to help the company improve ... and meet its long-term strategic objectives.’