USA: Chicago-based private equity firm Wind Point Partners has completed a corporate carveout of locomotive services business Velocity Rail Solutions from Stellex Capital Management’s A Stucki Company.
Velocity’s services include mobile refuelling, inspection, maintenance and light repairs and replenishment of consumables such as oil, sand and water. It has its headquarters in Draper, Utah, and operates 75 sites with 450 employees and more than 250 specialist vehicles.
Wind Point and Velocity management led by President Jeff Chesler now intend to invest in organic growth and pursue strategic acquisitions in complementary rail-related services.
‘Wind Point offers Velocity access to a comprehensive executive network and additional resources that will significantly enhance our ability to grow and better support our customers’, Chesler said on November 25.
Stucki CEO Ron Port said ’the sale of Velocity is a pivotal step in our journey to integrate our business, focusing our resources and expertise on the strength of our consolidated portfolio to better serve our customers’.
Kirkland & Ellis served as legal counsel to Wind Point and KPMG provided transaction advisory services. RBC Capital Markets provided financial advice to Stucki and Greenberg Traurig was legal adviser.
