Tennessee Southern Railroad was acquired by Patriot Rail. Independent short-line rail operator joins a roll-up. 2ndG represents the selling shareholders.
October 2006
Our client (based in Tennessee) was owned and operated by a small group of private investors. Diverging business interests and estate planning objectives indicated that a sale was appropriate. More….
Tennessee Southern operated approximately 120 miles of track, with 19 locomotives, numerous switching facilities and a large maintenance yard. It also operated an inland waterway port facility in Alabama. Second Generation analyzed relative values, identified target prospects, managed a bid process (with more than 10 bidders) and handled final negotiations with the two best bidders. The undisclosed final price was in excess of 1.2 times revenues.
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