Recapitalization • Transportation

Trive Capital and Kilroy Partners Acquire Iowa Northern Railway

On March 29, 2016, private equity firms Trive Capital and Kilroy Partners acquired transportation company Iowa Northern Railway

Acquisition Context
  • This is Trive Capital’s 2nd and Kilroy Partners’ 1st transaction in the Transportation sector.
  • This is Trive Capital’s 16th and Kilroy Partners’ 1st transaction in the United States.
  • This is Trive Capital’s 1st and Kilroy Partners’ 1st transaction in Iowa.
Investment Fate
  • Iowa Northern Railway was sold to a publicly-traded strategic buyer in 2023.

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M&A Deal Summary

Date March 29, 2016
Target Iowa Northern Railway
Sector Transportation
Buyer(s) Trive Capital
Kilroy Partners
Deal Type Recapitalization

Target Company

Iowa Northern Railway

Waterloo, Iowa, United States
Iowa Northern Railway is a short line railroad. The Company operates over 250 miles of rail in northeastern Iowa, with a main line track running from Manly to Cedar Rapids (through Waterloo/Cedar Falls) as well as several branch lines that connect to the main track. The Company provides transportation to customers in agriculture, energy, and manufacturing and offers value-add services to Class I railroads. Iowa Northern Railway was established in 1984 and is based in Waterloo, Iowa.
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Buyers Overview 2

Buyer

Trive Capital

Dallas, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2012
PE ASSETS 7.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Trive Capital is a hands-on, operationally-focused private equity firm that targets complex or special situations in 'out of favor' but protected market niches. The Firm will consider businesses throughout North America offering differentiated products/services with leading/defensible industry positions. Trive looks to commit $10 to $300 million per investment in businesses generating revenues of $40 million to $1.5 billion. Sectors of interest include automotive, transportation, aerospace/defense, building products, construction, infrastructure, healthcare, manufacturing, industrial, chemicals, distribution, consumer goods, energy services, business services, and communications. Trive Capital was founded in 2012 and is based in Dallas, Texas.


Deal Context for Buyer #
Overall 17 of 57
Sector: Transportation 2 of 4
Type: Recapitalization 2 of 2
State: Iowa 1 of 2
Country: United States 16 of 53
Year: 2016 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-02-17 East West Copolymer

Baton Rouge, Louisiana, United States

East West Copolymer LLC is a manufacturer and supplier of synthetic rubber to a broad base of customers across the industrial and tire markets. East West Copolymer is based in Baton Rouge, Louisiana.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-04 ParFab

Inola, Oklahoma, United States

ParFab is a provider of components and field services for heat and pressure-intensive applications related to the downstream energy infrastructure markets. ParFab focuses on steel fabrication, ASME coil welding, piping, refractory and industrial coatings services from its fabrication facility, and its field services division focuses on process heater erection, revamp / re-tubing, and other activities stemming from the downstream new capital and recurring maintenance cycles. ParFab was established in 2001 and is based in Inola, Oklahoma.

Buy -
DESCRIPTION

Kilroy Partners is a private investment firm focused on investing in lower middle-market, family-owned businesses, corporate divestitures, and other non-performing or challenged companies. The Firm will consider opportunities throughout North America valued up to $75 million. Sectors of interest include aerospace, defense, niche manufacturing, food, and transportation. Kilroy Partners was formed in 2014 and is headquartered in Boca Raton, Florida.


Deal Context for Buyer #
Overall 1 of 6
Sector: Transportation 1 of 1
Type: Recapitalization 1 of 1
State: Iowa 1 of 1
Country: United States 1 of 6
Year: 2016 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-06-01 Kay Manufacturing Co.

Saint Joseph, Michigan, United States

Kay Manufacturing Co. is a Tier II automotive supplier providing high-volume, precision machining services to Tier I and OEM automotive subassembly manufacturers. Kay Manufacturing Co. was founded in 1946 and is based in Saint Joseph, Michigan.

Buy -