A car-leasing company has been acquired by an equity firm, the latest sign that Wall Street is bullish on railroading.
Marietta, Ga.-based RGCX, LLC announced that is has been acquired by Corrum Capital in a deal “that will provide RGCX with greater resources and flexibility in the railcar market and enables the company to pursue a long-term growth strategy.”
Terms were not disclosed.
Corrum describes itself as “an independent, private investment firm that takes an active and asset-level approach to cashflow-oriented investing.” Leasing is one focus of its investment strategies.
Privately-held RGCX manages a diversified fleet of railcars that operate throughout the U.S., Canada and Mexico, including tank cars, grain hoppers, aluminum open-top hoppers, small-cube covered hoppers, steel gondolas, and boxcars. RGCX offers long- and short- term leases and both net and full service leases. It has an operations and servicing center in McAllen, Texas.
“RGCX is very pleased to welcome Corrum Capital as our new owner,” said Nick Tupper, president of RGCX. “Corrum Capital brings a unique blend of financial expertise, market access, and management insight through their ownership of other leasing and operating businesses. We are excited to further grow our railcar portfolio and expand our customer relationships.”
Corrum managing partners Jason Cipriani and Jonathan Mandle, and Corrum adviser Michael Robinson will join RGCX’s board of directors.
“We look forward to working with the RGCX team to execute on a long-term, disciplined growth strategy that leverages the company’s significant experience in the railcar leasing market,” said Cipriani. “RGCX has been in operation for over 40 years, and we look forward to working with the team to develop the company’s next chapter.”