Riverside Engineers has sold Nordco, a rail equipment and services platform, to Omers Private Equity, a subsidiary of Omers Administration.
Riverside Engineers has sold Nordco, a rail equipment and services platform, to Omers Private Equity, a subsidiary of Omers Administration.
The sale has delivered 5.1x gross cash-on-cash return and 31 per cent gross IRR.
Nordco is a cross fund investment between the 2000 Riverside Capital Appreciation Fund and the 2003 Riverside Capital Appreciation Fund.
Based in Oak Creek, Wisconsin, it designs, manufactures and markets equipment used in the construction, maintenance, and repair of railroad tracks.
After purchasing Nordco in 2003 in a management-backed buyout, Riverside assisted in the development of a plan to leverage the company’s strengths in the maintenance-of-way equipment and service parts market while diversifying its product and service offerings.
Within the first six months of the platform acquisition, Riverside worked with management to move the company into a larger and more modern facility. Riverside backed the launching of a ‘rebuild and repair’ segment that achieved 36 per cent CAGR during Riverside’s period of ownership.
Tim Gosline, Riverside partner, says: ‘Partnering with the excellent Nordco management team has truly been a pleasure. The returns generated by this sale, despite the tough environment, are a testament to the quality of Nordco’s business model and its management. This transaction is a great example of Riverside’s ability to guide and grow companies to their full potential, even during challenging times.’
Bruce Boczkiewicz, Nordco president and chief executive, adds: ‘Riverside has been a fantastic partner over the past six years. With Riverside’s help, we have successfully diversified into additional strategic segments of the rail services industry, seamlessly integrated four valuable acquisitions into the Nordco family, and grown our core market position. While we will remember our relationship with Riverside fondly, we look forward to our new partnership with Omers.’
