New York, New York – December 15, 2020 – GenNx360 Capital Partners (“GenNx360”), a New York-based private equity firm, today announced the successful sale of its portfolio company, Appalachian Railcar Services (“ARS” or “the Company”), to Cathcart Rail (“Cathcart”).
GenNx360 invested in ARS in March 2017 as part of a sector focused, proactive sourcing strategy targeting investments in the railcar services sector. Over the past three years, GenNx360, in partnership with management, transformed ARS into a highly strategic industry leader through a number of initiatives that drove revenue and margin growth. Key accomplishments include significantly enhancing the leadership team, implementing a network-wide commercial strategy, driving improved operational efficiencies, improving the management information systems and controls, expanding facility capabilities, and integrating four disparate business units into an industry-leading network of facilities providing best-in-class customer service and quality across every facility.
“We’re very proud of what management and GenNx360 have accomplished. The ARS investment represents a great example of our core capabilities including proven proactive sourcing, driving growth and profitability through operational and commercial enhancements, and building industry leading companies,” said Monty Yort, the GenNx360 Managing Partner who led the transaction.
“I am very pleased with the team we have built and, together, we have established ARS as a highly attractive, strategic participant in the rail sector. We have enjoyed a strong working relationship with GenNx360, and they have been an outstanding partner in supporting our transformation of ARS,” said Scott Driggers, Chief Executive Officer of ARS.
“We acknowledge the effort and resources GenNx360 contributed to ARS and are excited to integrate the Company and team in to Cathcart. We are looking forward to building upon the strong platform that GenNx360 helped create,” said Casey Cathcart, Executive Chairman of Cathcart.
Morrison Cohen acted as legal counsel to ARS and GenNx360. Harris Williams & Co. served as the exclusive financial advisor to ARS on this transaction.