Generational Capital Markets, Inc., Member FINRA/SIPC, announced the sale of its client, American Track Generations, to Hilltop Private Capital. The acquisition closed Nov. 1, 2016. Details were not disclosed.
American Track Generations, based in Fort Worth, Texas, specializes in the design and construction, inspection, repair, and maintenance of railroad track, predominantly for private users. ATG was founded in 2007 by members of the Bush family, all rail services industry veterans. The company has another office in Tulsa, Oklahoma.
Hilltop Private Capital, headquartered in New York City, is a private equity firm focused on making investments in business and industrial products and services companies in the lower middle market, typically with revenues between $10 million and $150 million. The firm is dedicated to combining tailored operational resources, flexible transaction structures, and long-term value creation with investor access and alignment. Hilltop’s strategy is to take a hands-on approach to investing and to build collaborative relationships with managers of businesses at a growth or ownership inflection point.
Hilltop also acquired C.J. Bridges Railroad Contractor, which it will combine with ATG to form a new entity, American Track Services.
“The combination of these two great companies creates a platform with the geographic breadth, diverse capabilities, and engineering sophistication to provide private track users of any size with a suite of services focused on their unique need,” said ATG President Bill Bush, who will become President and CEO of American Track Services. You can hear more about Bill’s experiences with the Generational team by following this link: Bill Bush – My New Path
The investments in ATG and C.J. Bridges are the first for Hilltop, which was founded in 2016 by private equity veterans Drew Shea and Kate Lehman.
“The track maintenance industry is a sector we have been studying for some time, and we are thrilled to see those efforts result in a platform of this magnitude and quality,” said Shea. “We are excited about what we believe is a very attractive opportunity for further industry consolidation and geographic and service offering expansion.”
Generational Capital Markets President and Supervising Principal Brenen Hofstadter successfully closed the deal with support from Vice President Julio Dominguez. Generational Equity Executive Managing Director William Kushnir established the initial relationship with ATG.
“The simultaneous combination of two private businesses in an M&A transaction is not typical,” said Hofstadter. “But it was the right solution for our client.”