Carlyle Group acquires majority stake in rail IT provider RMI
Monday brought another private equity deal in the transportation and logistics sector as The Carlyle Group said it has acquired majority ownership in RMI, a Web-based provider of railroad management services.
RMI’s customers include Class I, short-line and terminal switching railroads, railcar leasing companies, shippers and barge operators. The Atlanta-based company helps customers manage transportation, revenue, equipment and freight. The independent information technology provider processes about seven million carloads annually to help the rail industry control operations, accounting and improve customer service.
RMI Chief Executive Officer J. Peter Kleifgen said, “Now is the time to recapitalize the company by bringing in a new equity investor. Carlyle’s extensive knowledge of the transportation sector, as well as its global network, will enable us to further the growth of our business ' We will have the resources to continue to pioneer new technologies and industry-wide initiatives, as well as develop new business in related markets.”
Washington-based Carlyle said the RMI management team has invested its own money in RMI and will remain in place. Financial terms were not disclosed.
Last week, Apollo Management won a bid for Eagle Global Logistics. Earlier this year Fortress Investment bought RailAmerica, a short-line conglomerate, and in May it acquired Florida East Coast Railway.
Carlyle Group acquires majority stake in rail IT provider RMI
