JACKSONVILLE, Fla., Aug. 8, 2022
/PRNewswire/ -- Patriot Rail Company LLC today announced it
has entered into an agreement to acquire Denver-based Pioneer Lines, Inc., a railroad
holding company operating 15 short line railroads across 12 states,
from BRX Transportation Holdings.
Patriot Rail Company LLC today announced it
has entered into an agreement to acquire Denver-based Pioneer Lines, Inc.
The acquisition, subject to regulatory authorization, will
support Patriot Rail's growth strategy, increasing the Jacksonville, Florida, company's short line
operations to 31 railroads from 16 and enabling an expanded Patriot
to serve customers in new markets in Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas,
Michigan, Mississippi, Ohio, Pennsylvania, and Tennessee. Patriot's acquisition of the
strategic Pioneer short line portfolio will also offer rail users
enhanced service options across more locations throughout
the United States.
"Pioneer Lines is a diverse rail company with talented
professionals and deep customer relationships," said John E. Fenton, Patriot Rail's chief executive
officer. "Pioneer Lines' safety culture and focus on operational
excellence aligns directly with Patriot Rail's vision and mission.
These synergies position us to continue to exceed customer
expectations as a best-in-class rail partner to meet their freight
shipment and logistics needs."
Patriot Rail expects this expansion to help drive new pathways
connecting with U.S. and global markets, boosting economic growth
and jobs, Fenton added.
"The transformation of Pioneer into one of the top short line
operators in North America is
testament to the operational skill and hard work of Alex Yeros and the Pioneer team," said
Andrew Right, Pioneer board member
and managing partner of US InfraVest, Pioneer's majority investor.
"US InfraVest, along with our partner investors, Stephens Capital
Partners and Brookhaven Capital Partners, are honored to have been
able to help Pioneer grow and look forward to its continued success
in the years to come."
"I am excited by the potential this acquisition brings to
Pioneer's customers and employees," noted Alex Yeros, chief executive officer and
president of Pioneer Lines and principal of Brookhaven Capital
Partners. "Building Pioneer into one of North America's best-performing and
most-respected short line rail companies could not have been
possible without the trust of our customers and our talented team
of experts. Our team is looking forward to the opportunity to grow
with Patriot to provide the improved efficiency and reach of a
larger platform, with the personalized care, flexible local
service, and deep industry expertise that Pioneer is known
for."
"This agreement presents opportunities to deliver more
innovative solutions for customers of Patriot Rail and Pioneer
Lines," said John Ma, Patriot board
member and head of North America
for Igneo Infrastructure Partners, Patriot's majority investor.
"Pioneer Lines' assets are accretive to Patriot Rail's
platform and support Igneo's long-term investment and ESG
objectives."
Patriot Rail board chair Deb
Butler added, "Rail shippers will now have increased service
options across a broader national footprint, and the integration of
Patriot and Pioneer will further enhance our combined capability as
a rail solutions partner dedicated to safety and customer
growth."
RBC Capital Markets advised Patriot Rail on the transaction.
Winston & Strawn served as legal advisor to Patriot Rail.
Northborne Partners, LLC served as the exclusive financial advisor
to Pioneer Lines and BRX. Fried Frank and Arnold & Porter
served as legal advisors to Pioneer Lines and BRX.
About Patriot Rail
Patriot Rail operates 16 regional and freight short line
railroads, a scenic rail excursion train, and rail-related services
companies with operations in over 15 states. Service capabilities
include railcar storage, contract switching, transloading, railcar
cleaning, engineering services, excursion railroads, real estate,
and track access. In addition, Patriot Rail is a direct partner in
assisting to provided railcar repair and maintenance, railcar
dismantling, and environmental services including centralized
wastewater treatment. For more information about Patriot Rail,
visit www.patriotrail.com
About Igneo Infrastructure Partners
Igneo Infrastructure Partners is an autonomous investment team
in the First Sentier Investors Group. It invests in high-quality,
mature, mid-market infrastructure companies in the utilities and
transport sectors in the UK, Europe, North
America, Australia and
New Zealand. Operating since 1994,
the team works closely with portfolio companies to create long-term
sustainable value through innovation, a focus on ESG and proactive
asset management. Igneo manages US$14.6
billion in assets as of June 30,
2022 on behalf of more than 120 investors around the world.
For more information, visit igneoip.com
About Pioneer Lines
A freight and logistics leader since 1986, Pioneer Lines owns
and operates 15 short line railroads across 12 states.
Headquartered in Denver, Colorado,
Pioneer Lines is the local workhorse of the national rail network
and the link for over 100 industries, from rural and small-town
America to domestic and global markets. Pioneer's railroads
directly or indirectly support over 17,000 jobs in the United States and transport diverse
commodities, including agricultural and food products, iron and
steel, plastics, chemicals, building materials, and forest
products. For more information, visit www.PioneerLines.com.
About US InfraVest
US Infravest Managers LP (US InfraVest) is a standalone
investment manager supported with committed capital from long-term
institutional investors. The US InfraVest team combines
infrastructure and private equity investing expertise with
development and management experience, partnering with exceptional
operational management teams to drive returns. US InfraVest
concentrates on value add and opportunistic infrastructure
investments focusing on operating businesses in the North American
transportation, logistics and infrastructure sectors including
companies that develop, service and/or manage assets in the
transportation, logistics and infrastructure sectors as well as
other operating companies in traditional infrastructure
sectors. For more information, visit www.usinfravest.com.
About Stephens
Stephens Capital Partners LLC is the private equity affiliate of
Stephens Inc., a full-service, privately owned investment banking
firm based in Little Rock,
Arkansas, with offices across the U.S. and in Europe. Founded in 1933, Stephens has decades of experience in
corporate finance, financial planning, mergers and acquisitions,
insurance services, research, and public finance. The firm has
conducted private equity transactions for over 60 years and seeks
to be a reliable long-term partner to management of growing
companies. For more information, visit www.stephens.com.
About Brookhaven Capital Partners
Based in Denver, Brookhaven
Capital Partners is a privately held investment company focused on
real estate and infrastructure. Brookhaven and its principals are leaders in
real estate investment and infrastructure for more than three
decades investing across the spectrum of real estate property types
and critical transportation assets that support industry, and
promote new economic development, community investment, and job
creation in the United States.
Together, the principals of Brookhaven have invested over $2.5 billion in commercial real estate and
infrastructure, combining nearly 100 years of experience. Learn
more at www.brookhavenpartners.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/patriot-rail-to-acquire-pioneer-lines-enhancing-rail-shipper-capabilities-for-customers-301601682.html
SOURCE Patriot Rail Company LLC; Pioneer Lines