Investors back shortline company
USA: Sam Zell’s Equity Group Investments has led a group of co-investors including International Rail Partners in a commitment of more than $200m to shortline investor RailUSA. Terms have not been disclosed.
IRP is led by Gary Marino, who was formerly the founder, President & CEO of shortline holding companies RailAmerica and Patriot Rail Corp. IRP’s RailUSA subsidiary made its first acquisition in August, when it bought the 340 km Grenada Railroad linking Memphis, Tennessee with Canton, Missouri.
‘The rail industry is a durable, recession-resistant sector with strong cash flow characteristics’, said EGI Co-President Mark Sotir on October 24. ‘With an increasing need for first and last-mile solutions to the customer, we see ongoing opportunities in the space.’