Kennett Square-based Regional Rail sold

KENNETT SQUARE >> A Los Angeles-based private equity firm this week completed the sale of Kennett Square-based Regional Rail to 3i Group. Regional Rail operates short lines and rail-related businesses in the U.S. Mid-Atlantic region with more than 155 miles of track.

Regional Rail services a broad range of end-markets including agriculture, lumber, energy and metal products. The Company’s wholly owned subsidiary, Diamondback Signal, provides engineering, construction and main

tenance for highway rail crossings throughout the United States. It was acquired by Levine Leichtman Capital Partners (LLCP) for an undisclosed sum.

“The Regional Rail investment has been very successful for both LLCP and the Company’s management team,” said Lauren Leichtman, Founding Partner and Co-Chairperson of the Executive Committee of LLCP. “We are proud to have enhanced the value of Regional Rail through multiple avenues including winning new customers, acquiring additional track miles and optimizing service levels and operations. We wish the management team continued success.”

Al Sauer, CEO of Regional Rail, said, “We have truly enjoyed our partnership with the team at LLCP, who helped support our growth initiatives. We will truly miss working with them but are excited to enter our next phase of growth under 3i.”

Since inception, Regional Rail has seen steady growth of its existing line traffic, successfully expanding to neighboring regions and into infrastructure services.

“This is an exciting opportunity to partner with an established management team as we seek to put additional capital to work in North American rail infrastructure,” said Rob Collins, Managing Partner, 3i North American Infrastructure. “The North American transportation market is rapidly evolving and Regional Rail is well positioned to benefit from those changes with future acquisitions.”

LLCP is a Los Angeles, California based private investment firm that has managed approximately $10.5 billion of institutional capital since its inception. LLCP invests in middle market companies.

FRAN MAYE - MEDIANEWS GROUP The rail station at Kennett Regional Rail, which was purchased this week by a private equity firm based in Los Angeles, California.