Monday 24 February 2020

S-2972-3 RS Locomotive Mobile Repair Companies (US)



Business Description:  
With an Eastern and Midwestern U. S. base of operations, two companies with compatible and comparable core competencies are offering a potential buyer the opportunity to consolidate their operations to create an efficient footprint for a nationwide locomotive mobile repair company.  There are 20,000 EMD (Electro-Motive Diesel) locomotives currently in service in North America, both companies specialize in servicing this type of locomotive, which is approximately 30% of the market for diesel-electric locomotives.

Distribution:
While geographically contiguous and providing similar services across 20 U.S. States, the two companies do not compete.  The combined company would be primarily focused in the Midwest and along the eastern seaboard.

Operational Strengths:
One company has an in-shop facility for heavy locomotive repairs, while the other has a facility for painting locomotives.  The combined companies’ assets of trucks, specialized equipment locomotive parts and inventory are valued at more than $1 million.  Collectively, the company’s management and personnel have more than 100 years of locomotive repair and maintenance expertise.  Mutually, the companies have in-shop and in-the-field, 14 highly trained and skilled electrical, diesel and mechanical technicians.  Since their founding, the company has performed over 9,000 locomotive field service calls.  Common service calls and maintenance for locomotives include performing running repairs, refurbishing, modernizing, cleaning, painting, engine change, remote control work, as well as electrical troubleshooting, modification and re-wiring, and mechanical troubleshooting, and traction control installation.

The Transaction:
The owners are open to collaborating with a new single owner toward consolidation of their culturally and operationally well-matched companies, which offers a footprint for a nationwide locomotive mobile repair company.

Financial Summary (millions)

2019 Est (Oct TTM)
2018
2017
Revenue
$3.6M
$3.4M
$2.7M
Adjusted EBITDA
$944K
$623K
$887K

Other Highlights
Location
Financials
Management Team in Place
Years in Business
SIC Classification
Midwest & NEast, USA
Audited
Yes
20 Years
4789
D
Direct All Inquiries to:

Gottesman Company
Refer to:  S-2972-3 RS
Tel: 718-618-5346      UK Office: +44 (0) 7906786505
                                        E-mail: dmj@gottesman-company.com