Infrastructure asset manager InfraRed Capital Partners has acquired a majority stake in Rail Modal Group, a US inland intermodal rail terminal and export logistics platform. The transaction was made on behalf of one of its value-add funds.
Founded in 2018 by Greg Oberting, who will continue to lead the business as a minority shareholder, RMG, through its network of inland terminals, partners with railroads and ocean carriers to provide end-to-end transport from producer to port.
While financial details were not disclosed, sources estimate InfraRed’s investment to be in the region of $150m (€130m).
Infrared said it plans to expand capacity and resilience at RMG’s existing terminals, broaden service capabilities, and develop additional locations.
Filip Guz, partner and head of Americas investments at InfraRed Capital Partners, said: “RMG is an established, asset-backed platform providing essential infrastructure to customers across the agricultural and logistics supply chains. The company has developed a differentiated network, strong customer relationships and a compelling pipeline of growth opportunities.
“We have been impressed by Greg and the RMG management team and by what they have built to date. We look forward to supporting the company with capital, infrastructure expertise and operational resources as it expands its network and realises its long-term potential.”
Greg Oberting, founder and CEO of RMG, said: “This transaction represents an important milestone in the evolution of Rail Modal Group and is a testament to the hard work and dedication of the entire RMG team.
“InfraRed demonstrated a strong understanding of our business, our industry and the essential role that RMG plays in the North American supply chain. Its experience scaling infrastructure platforms, together with its long-term investment approach, makes InfraRed an ideal partner for RMG. I am excited to continue leading RMG as CEO and expand the services we provide to our customers and transportation partners and the communities which we serve.”
To read the latest IPE Real Assets magazine click here
