Auxo Investment Partners reached further into the rail industry with the acquisition of Ferrovia Services LLC, an Auburn, Ala.-based railroad vegetation management company.
The acquisition follows Grand Rapids-based Auxo’s October acquisition of railroad maintenance company Genesis Rail Services LLC in Bluefield W. Va.
Founded in 1976, Ferrovia Services inspects, manages and abates vegetation along rail corridors with locations across the U.S.
“Given its complementary, but not overlapping, service offerings and customer base, Ferrovia will make an excellent fit alongside Genesis, as well as Auxo’s future acquisitions in the railroad maintenance sector,” said John McPherson, Auxo’s operating partner and a board member of its rail industry platform.
Terms of the deal were undisclosed.
Integrating Ferrovia into the platform company created with the Genesis acquisition gives Auxo “full-service offerings (to) provide our customers with a highly capable, safety-focused and cost-effective track maintenance solution,” Auxo co-founder and Managing Partner Jeff Helminski said.
“As railways continue to outsource mission-critical maintenance services to meet efficiency standards and targeted operating ratios, adding Ferrovia’s best-in-class vegetation management capabilities to Genesis Rail’s existing services creates a unique offering within the railroad industry,” Helminski said.
Miller Johnson PLC, Barnes & Thornburg LLP, BDO USA LLP, Marsh & McLennan, Aon Plc, Strategies Wealth Advisors, Krauter & Co., Thomas Brady & Associates, Miedema Appraisals, Mercantile Bank of Michigan and Graycliff Partners served as advisers on the transaction.