Vossloh Group acquires concrete rail ties manufacturer; one Mexican plant included
Altus Capital Partners, an investment firm focused on middle market manufacturing companies in the U.S., announced the sale of Rocla Concrete Tie, Inc., based in Denver, Colorado, to German-based rail infrastructure supplier Vossloh Group.
Founded in 1986, Rocla manufactures pre-stressed concrete railroad ties and turnout ties for Class I railroads, commuter passenger operations, transit authorities and industrial operations.
Altus Capital acquired Rocla in May 2013 to participate in the expected need of superior and durable concrete ties that reduce maintenance and prolong rail life not just within the U.S. railroad industry, but globally.
Altus continued to invest in Rocla’s growth through two add-on acquisitions, two new facilities and plant expansion. This additional investment allowed Rocla to further expand its customer base, product offerings and reach throughout the U.S. and Mexico. Rocla is now the leading producer of pre-stressed concrete rail ties in the United States.
“The dedication of the management team along with its investments has allowed Rocla to double its revenue since Altus’ acquisition in 2013,” said the company in a press release.
Major customers for its products include Amtrak, Burlington Northern and Union Pacific, as well as other Class I railroads, light rail/transit projects, high-speed corridors and industrial/ports all around the country.
Rocla began producing ties in the United States in 1987 and now has North American manufacturing plants in Pueblo, Colorado; Amarillo, Texas; Bear, Delaware; Portsmouth, Ohio; Ft Pierce, Florida; Tucson, Arizona and San Jose Iturbide, Guanajuato, Mexico.
Financial terms in the deal were not disclosed, but Altus Capital estimates an 4.5x return on its equity.