Regional Rail Acquires Pinsly Railroad’s Fla. OperationsWritten by Andrew Corselli
3i-backed Regional Rail has agreed to acquire Pinsly Railroad Company’s Florida operations, with 208 miles of track across three short line railroads, subject to authorization from the Surface Transportation Board.
Pinsly’s Florida operations include the Florida Central Railroad, the Florida Midland Railroad and the Florida Northern Railroad. The railroads provide freight transportation, transload and railcar-storage services to a broad customer base of more than 65 blue-chip companies covering a diverse set of end markets, such as heating, fuel blending, building products, chemicals, food and agriculture, scrap metal and plastic resins.
Given its location in and around Orlando and Tampa, Pinsly’s Florida operations “provide freight traffic that is over 90% inbound serving multiple, high-growth consumption markets throughout the state.”
3i is an international investment manager focused on mid-market Private Equity and Infrastructure. Its core investment markets are northern Europe and North America.
Regional Rail is a transportation-holding company headquartered in Kennett Square, Penn. It is the parent company of East Penn Railroad LLC (ESPN); Middletown & New Jersey Railroad, LLC (MNJ); Tyburn Railroad, LLC (TYBR); and Diamondback Signal, LLC.
Pinsly, through its subsidiaries, is a short line railroad operator headquartered in Westfield, Mass. Pinsly’s Florida operations include the Florida Central Railroad Company, Inc. (FCEN); Florida Midland Railroad Company, Inc. (FMID); and Florida Northern Railroad Company, Inc. (FNOR).
“Pinsly’s Florida operations are highly complementary to Regional Rail and expand our geographic footprint,” said Al Sauer, CEO, Regional Rail. “The lines have a large and diverse customer base, a strong pipeline of new freight customers and service many highly attractive industrial development sites, all of which provide an exciting growth opportunity. We also intend to retain all of the lines’ employees and look forward to supporting and working with the local management team to continue the lines’ impressive growth.”
“This is an attractive and strategic acquisition for Regional Rail, given the similarities between the businesses,” said Rob Collins, Managing Partner, 3i North American Infrastructure. “Combined, the two companies will operate 21 line segments across four states, with over 355 miles of track. The U.S. short-line network is attractive to 3i and the combined company will be well positioned for potential future acquisitions.”