NORTH AMERICA: Infrastructure-focused private equity manager Bernhard Capital Partners has reached an agreement to acquire infrastructure contractor RailWorks Corp from Chicago-based private equity firm Wind Point Partners.
‘We have long recognised that rail would be an important component of our infrastructure services-focused investment strategy, and we are excited to have the opportunity to partner with the leading provider of maintenance and construction services in this space’, said Mark Spender, Managing Director of Bernhard Capital, on September 30.
Founded in 1998, New York based RailWorks provides track and electrical construction services, maintenance and other products for rail companies throughout the USA and Canada. It was acquired by Wind Point in 2007, and has since expanded fourfold with investment in management talent, IT and safety. RailWorks’ brands include LK Comstock, PNR RailWorks, NARSTCO and HSQ Technology, and it now has 1 300 employees at more than 30 offices.
The transaction is expected to close in Q4 2021, subject to customary conditions including regulatory approvals. Kevin Riddett will continue to serve as President & CEO, and the executive team will remain unchanged. Riddett said RailWorks ‘has enjoyed unprecedented growth’ over the last decade and ‘for customers, it is business as usual’.
JP Morgan and Banque de Montréal are serving as financing partners in the transaction. Kirkland & Ellis served as legal counsel and Houlihan Lokey provided financial due diligence support to Bernhard Capital.
Kirkland & Ellis acted as legal advisor to RailWorks, and Baird and Houlihan Lokey as financial advisers. Ernst & Young provided financial due diligence support.
