Alpenglow Rail and CC&L Infrastructure Expand Rail Portfolio with Acquisition of USA Rail Terminals

Investment adds two strategic railcar storage, transloading and switching terminals in the Gulf Coast.

DENVER, Aug. 5, 2020 /PRNewswire/ -- Alpenglow Rail (Alpenglow), a Denver-based firm specializing in investing in, operating and growing rail businesses, in partnership with Connor, Clark & Lunn Infrastructure (CC&L Infrastructure), today announced the acquisition of USA Rail Terminals (USA Rail) from the High Roller Group and Jim Donnan Companies, both family-controlled investment companies based in Center, Texas. USA Rail is comprised of two terminals that provide a broad range of rail services, including railcar storage, switching, transloading and railcar cleaning solutions in the Gulf Coast of the United States.

USA Rail owns an 85-acre, Union Pacific Railroad served facility in Louisiana, which is distinctively positioned within the heart of the Port Allen and Baton Rouge industrial markets and located near leading companies such as ExxonMobil, Tokai Carbon, Placid Refinery, and Dow Chemical, among others. Today, this facility stores over 550 railcars and expects to expand its capability to store over 2,000 railcars. The Port Allen facility switches over 15,000 carloads per year, transloads a diverse commodity mix, and provides railcar cleaning solutions.

USA Rail also owns a 51-acre Kansas City Southern Railroad served terminal in Texas, which is strategically located within the Port Arthur and Beaumont refinery and petrochemical corridor, in close proximity to Indorama, Exxon, Chevron, Motiva, Total, BASF and many more blue chip industrial players. The Port Arthur facility has capacity to store over 900 railcars, switches over 15,000 carloads per year, and provides a full suite of rail services.

"USA Rail and the High Roller team had a lot of vision and built a great business. The facilities are state-of-the-art and built to last. The USA Rail assets are strategically located in excellent industrial markets and are well-positioned for both defensibility and growth," said Alpenglow's CEO, Rich Montgomery. "With our relationships, marketing capabilities and commitment to safety and customer service, we're thrilled to work alongside the USA Rail team to continue to grow these companies, and to explore future opportunities with the High Roller team."

"Rich and the teams at Alpenglow and CC&L Infrastructure have been great to work with," said Dustin Bailey, CEO and President of the High Roller Group. "They moved quickly to close the deal on a very tight timeline, they stuck to their word on price and were creative problem solvers. We were pleased to reach an agreement with Alpenglow and look forward to working with them on future opportunities."

Alpenglow and CC&L Infrastructure also own and operate VIP Rail, a business that comprises two railcar storage, transloading, railcar cleaning, and switching companies in Sarnia, Ontario served by the Canadian National and CSX Railroads.

According to Montgomery, "USA Rail is a great addition to our portfolio. VIP Rail and USA Rail serve common customers and provide similar services, which will create tremendous synergies across our businesses. Our partner, CC&L Infrastructure is committed to investing in assets that are resilient and have long-term viability. CC&L Infrastructure's focus on owning and operating assets for the long-term allows us to maintain the legacy of the railroad businesses we acquire while driving value for both our customers and employees. In USA Rail, we have found an asset that accomplishes these goals."

About Connor, Clark & Lunn Infrastructure:
CC&L Infrastructure invests in middle-market infrastructure and infrastructure-like assets with highly attractive risk-return characteristics, long lives, and the potential to generate stable cash flows. CC&L Infrastructure is a part of Connor, Clark & Lunn Financial Group Ltd., a multi-boutique asset management firm whose affiliates collectively manage over CAD $77 billion in assets. For more information, please visit www.cclinfrastructure.com.

About Alpenglow Rail:
Alpenglow Rail develops and manages freight rail businesses and related transportation assets across North America and is actively seeking acquisitions of and partnerships with short line railroads, terminals, and related transportation businesses. Alpenglow Rail was founded by seasoned railroad executives Rich Montgomery, Darcy Brede, Henning von Kalm and Josh Huster. For more information, please visit www.alpenglowrail.com.

About High Roller Group:
High Roller Group is an operational holding company that manages and provides venture capital to investments across multiple industry segments, with a primary focus on energy, infrastructure, or industrial end markets. The company seeks to invest in high growth opportunities and generally partners with other owners or management to execute a given strategy. For more information, please visit www.highrollergroup.com.

About Jim Donnan Companies:
Jim Donnan Companies is a family-controlled investment company based in Center, Texas focused on investing in various industrial, energy, and infrastructure related opportunities.

For further information:

Rich Montgomery
CEO, Alpenglow Rail
(720) 328-0944
[email protected]

Kaitlin Blainey
Vice President
Connor, Clark & Lunn Infrastructure
(416) 216-8047
[email protected]

SOURCE Alpenglow Rail

Related Links

http://www.alpenglowrail.com