Rail components and services provider A. Stucki Company (Stucki) on Nov. 27 reported completing the sale of Velocity Rail Solutions (Velocity) to private equity firm Wind Point Partners (Wind Point). Financial terms of the transaction were not disclosed.
Headquartered in Draper, Utah, with 75 sites across the United States, Velocity specializes in providing mobile fueling services to locomotives and other railroad equipment, as well as complementary locomotive services. It serves more than 300 rail yards, with 450 employees utilizing 250-plus specialized vehicles. “Under Stucki’s ownership, Velocity has expanded its offerings and grown significantly while delivering operational consistency, a reflection of Stucki’s core focus on serving its customers,” said Moon Township, Pa.-based Stucki, which in 2022 became a portfolio company of Stellex Capital Management.
Stucki noted that it has grown and diversified since its founding in 1911 to supply dynamic control products, brake system components, springs, bearings and track infrastructure and other products, as well as remanufacturing, repair, and additional services. The company operates facilities throughout the United States, Mexico, and Brazil. Its divisions include Alco Spring Industries, American Industries, American Turbocharger Technologies, BR&L (Birmingham Rail & Locomotive), DiMEC Rail Services, Independent Draft Gear, Magnus, Salco Products Inc., Seco Machine, Stucki Roller Bearing, and Stucki Locomotive Services.
“At Stucki, our goal has always been to drive innovation and deliver unmatched value to our customers,” said Ron Port, who in August succeeded John O’Bryan as CEO of the company. “The sale of Velocity is a pivotal step in our journey to integrate our business, focusing our resources and expertise on the strength of our consolidated portfolio to better serve our customers. By unifying our brands, we will create a stronger, consistent experience, delivering solutions that resonate with all customer segments. We could not be more excited for what the future holds at Stucki. We would like to thank and recognize the Velocity team for their contribution to the organization and we look forward to watching their continued growth under new ownership.”
Chicago-based Wind Point on Nov. 25 reported that it “completed a corporate carveout” of Velocity and is partnering with Velocity management, led by President Jeff Chesler. “Together, Wind Point and Velocity leadership intend to invest in organic growth initiatives and pursue strategic acquisitions to expand the company’s existing offerings,” according to the private-equity firm, which describes itself as “an active investor in both the logistics services and maintenance services sectors,” with select prior investments including RailWorks (now owned by Bernhard Capital Partners), STG Logistics, Quantix, Valicor, Smart Care, and D&H United. “Velocity will also seek acquisitions into other complementary, mission-critical rail-related services for both Class I railroads and industrial shippers.”
Wind Point said it evaluated Velocity alongside a group of advisors “with significant experience spanning Class I railroad and railcar services.” The Board includes Paul Titterton, who currently serves as Executive Vice President and President of North American Rail at GATX Corporation. Wind Point noted that it will continue exploring additions to Velocity’s Board and leadership team as the platform expands.
“This exciting new partnership with Wind Point offers Velocity access to a comprehensive executive network and additional resources that will significantly enhance our ability to grow and better support our customers,” commented Jeff Chesler. “The critical nature of our existing services necessitates an unwavering focus on providing value, safety, and reliability to our customers, and we look forward to adding compatible services to our portfolio. The entire Velocity team is very excited as we embark on this next chapter of our journey.”
Jake Behringer, Vice President at Wind Point, noted: “We are thrilled to partner with Jeff and the Velocity team as they lead the company into a new phase of growth. Velocity has demonstrated impressive momentum while maintaining tremendous operational consistency. We look forward to investing behind the management team’s vision and deepening our relationships within the rail industry to become the preferred outsourced provider across a multitude of high-value services.”
For Stucki, RBC Capital Markets, LLC, served as its financial advisor and Greenberg Traurig served as its legal advisor in connection with the transaction. For Windpoint, Kirkland and Ellis LLP served as its legal counsel and KPMG LLP provided its transaction advisory services.
In related developments, Stucki recently named Michelle Baker as Chief Transformation Officer and (Koray) Mert Yilmaz as President of Engineered Products for railroad rolling stock, serving the leasing, manufacturing, railroad, and shipper markets.
