TORONTO: Alpenglow Rail, a Denver-based firm specializing in investing in, operating and growing rail businesses, partnered with Connor, Clark & Lunn Infrastructure (CC&L Infrastructure) to acquire USA Rail Terminals from the High Roller Group and Jim Donnan Companies, both family-controlled investment companies based in Center, TX.
USA Rail consists of two terminals that provide a range of rail services, including railcar storage, switching, transloading and railcar cleaning solutions in the Gulf Coast of the United States.
USA Rail owns an 85-acre, Union Pacific Railroad served facility in Louisiana, which is located in the Port Allen and Baton Rouge industrial markets and located near companies such as ExxonMobil, Tokai Carbon, Placid Refinery and Dow Chemical. The facility stores more than 550 railcars and expects to expand its capability to store more than 2,000 railcars. The Port Allen facility switches more than 15,000 carloads per year, transloads a diverse commodity mix, and provides railcar cleaning solutions.
USA Rail also owns a 51-acre Kansas City Southern Railroad served terminal in Texas, which is located within the Port Arthur and Beaumont refinery and petrochemical corridor, in close proximity to Indorama, Exxon, Chevron, Motiva, Total and BASF. The Port Arthur facility has capacity to store more than 900 railcars and switches more than 15,000 carloads per year.
“USA Rail and the High Roller team had a lot of vision and built a great business. The facilities are state-of-the-art and built to last. The USA Rail assets are strategically located in excellent industrial markets and are well-positioned for both defensibility and growth,” Rich Montgomery, CEO of Alpenglow, said. “With our relationships, marketing capabilities and commitment to safety and customer service, we’re thrilled to work alongside the USA Rail team to continue to grow these companies, and to explore future opportunities with the High Roller team.”
“Rich and the teams at Alpenglow and CC&L Infrastructure have been great to work with,” Dustin Bailey, CEO and president of the High Roller Group, said. “They moved quickly to close the deal on a very tight timeline, they stuck to their word on price and were creative problem solvers. We were pleased to reach an agreement with Alpenglow and look forward to working with them on future opportunities.”
Alpenglow and CC&L Infrastructure also own and operate VIP Rail, a business that comprises two railcar storage, transloading, railcar cleaning and switching companies in Sarnia, Ontario served by the Canadian National and CSX Railroads.
“USA Rail is a great addition to our portfolio. VIP Rail and USA Rail serve common customers and provide similar services, which will create tremendous synergies across our businesses,” Montgomery said. “Our partner, CC&L Infrastructure, is committed to investing in assets that are resilient and have long-term viability. CC&L Infrastructure’s focus on owning and operating assets for the long-term allows us to maintain the legacy of the railroad businesses we acquire while driving value for both our customers and employees. In USA Rail, we have found an asset that accomplishes these goals.”
CC&L Infrastructure invests in middle-market infrastructure and infrastructure-like assets and is a part of Connor, Clark & Lunn Financial Group, a multi-boutique asset management firm whose affiliates collectively manage more than C$77 billion ($57.53 billion) in assets.