Rock Hill News & Portfolio News
Rock Hill Capital Announces Investment in Rail Service & Logistics
Houston, TX (October 7, 2014) – Rock Hill Capital Group (“Rock Hill”) today announced that it has completed a majority recapitalization of Rail Service & Logistics, LLC (“RSL”), a railroad services provider involved in the removal and disposal of wooden railroad ties.
RSL is managed by two industry veterans - Phil Rector, President and Greg Smith, Vice-President who have a combined 45 years in the railroad services and tie-to-biomass fuel business segment. “Greg and Phil are experienced entrepreneurs that fit our Rock Hill investment strategy. Both are well known within the industry with extensive customer relationships. We believe we can leverage the RSL management team to continue the growth of the current business and expand our business model to include other services for RSL’s customer base,” said James P. Wilson, Managing Director of Rock Hill.
In conjunction with the recapitalization of RSL, the Company also acquired the assets of Rail Tie Solutions (“RTS”) from Savage Transportation Management Inc., an affiliate of Savage Companies. The acquisition of the new assets expands RSL’s capabilities and geographic coverage to include four grinding facilities and operations from the Mid-West through the Western United States.
“We were excited to find a partner that believed in our strategy of expanding our business and service lines and that could support our acquisition of the RTS assets. With Rock Hill’s support and our expanded capabilities, we believe we can grow RSL into a premier provider of rail services,” said Greg Smith.
Debt financing for the transaction was provided by IBERIABANK.
About Rock Hill Capital
Founded in 2008, Rock Hill Capital Group, LLC is a private equity firm that targets investments in the growing middle to lower middle market with enterprise values up to $75 million. Rock Hill seeks to assist successful entrepreneurial companies located in the southern United States to continue to grow and expand their business.
Currently, Rock Hill has over $140 million of committed capital under management through Rock Hill Capital I, L.P. and Rock Hill Capital II, L.P. Other current portfolio companies include Alpha Technical Services Corporation LLC, Applied Global Technologies, Inc., Big Lake Services, Kiva Kitchen and Bath Holdings, LLC, SouthWaste Services Holdings, LLC, Diversified Well Logging, LLC, Tideland Signal Corporation, Core International, LLC, Durcoatings Holdings, LLC and Park Energy Services.
About Rail Service & Logistics, LLC
Rail Service & Logistics, LLC (“RLS”), headquartered in St. Louis, is a railroad services provider specializing in the removal and disposal of wooden railroad ties as a part of the railroad industry’s annual maintenance programs. RLS historical operating region is in Louisiana and Alabama and has recently expanded into Nevada and Oregon through the acquisition of RTS. The Company coordinates and works in concert with railroad track maintenance teams collecting, cataloging, and disposing of decommissioned railroad ties at the Company’s four grinding facilities.