Shortline & Aggregates Company Acquisition (Confidential Client)

When a private equity firm and a group of investors wanted to evaluate the economic pro-forma of potentially buying an aggregates company that had a shortline railroad interest it came to Tealinc with the complex question of how to evaluate the package.

The aggregates company had a less than stellar reputation in timely providing quality product and the shortline was being run as side line operation. Part of Tealinc assignment was to conduct an economic evaluation by understanding and explaining to the investor group the inter-relationship of the aggregates company and the shortline railroad. This accomplished Tealinc then was tasked with interpreting century old railroad operating agreements, working with two Class I Railroads and several customers on the line in addition to the aggregates company acquirers to devise an operating and rate structure that would work for everyone involved. Consecutively with this task Tealinc researched depot sites, rail and transload rates to put in a rail-truck operating system that would create an acceptable economic return for the investor group.

Upon putting in place all the planning structures and working with the investor group legal and finance team Tealinc then was directed to set up the operations and suggest an operating team. Tealinc used its’ extensive internal experience base and successfully set up the operations and tapped it’s network of top level executive candidates resulting in one candidate accepting the President position at the new company.