News
PNC Equity Partners Acquires the Wood Products and Services Divisions from RailWorks Corporation
Pittsburgh, PA [October 22, 2005] - PNC Equity Partners, the private equity affiliate of The PNC Financial Services Group, Inc., and the management team announced today the acquisition of four subsidiaries of RailWorks Corporation forming the new Tangent Rail Corporation. With headquarters in Pittsburgh, Pa., Tangent Rail is a leading provider of maintenance of way products and services to the railroad industry. PNC Equity Partners provided $13.2 million of equity to finance the transaction. Senior debt was provided by Merrill Lynch Capital and subordinated debt was provided by Babson Capital Management LLC.
Tangent operates three businesses: Rail Products, Rail Services and Rail Energy. Tangent Rail Products is a leading producer of treated wood railroad ties, creosote and coal tar products. Tangent Rail Services is a leading provider of premium rail grinding services for customers in the U.S and Canada. The business also provides switching, locomotive and car maintenance services to operators of industrial track. Tangent Rail Energy is a leading supplier of environmentally friendly crosstie/disposal services and industrial tie-derived boiler fuel.
Tangent Rail Corporation President and Chief Executive Officer William R. Donley is excited about the acquisition, and believes the partnership with PNC Equity Partners and experience of the incumbent management team will allow Tangent Rail to continue providing its customers with superior products and services.
"The Tangent Rail team has great depth and experience in the railroad industry. We will draw on that expertise to be leaders and innovators in the markets we serve," says Donley. "With a fresh start and new ownership under PNC Equity Partners, we're excited about opportunities to focus our resources on improving and expanding our core businesses to better serve our customers."
PNC Equity Partners will be represented on the Company's board by David Hillman and Justin Bertram. Mike Hand was also actively involved in the acquisition.
Founded in 1982, PNC Equity Partners, L.P. is the private equity affiliate of The PNC Financial Services Group, Inc. PNC Equity focuses on making equity investments in middle market companies that have enterprise values between $25 million and $125 million. Our equity investments are typically in support of change of control leveraged buyouts, recapitalizations and large minority financings. PNC Equity Partners targets companies that operate in the niche manufacturing, value-added distribution and outsourced services industries.
