Auxo exits Ferrovia, selling rail vegetation leader to Secovia Capital
What's the deal? Auxo Investment PartnersDealroom has a profile for this one. Try Dealroom → has sold FerroviaDealroom has a profile for this one. Try Dealroom →, the largest US provider of railroad vegetation management services, to Secovia CapitalDealroom has a profile for this one. Try Dealroom →. Terms were not disclosed. Auxo acquired Ferrovia in November 2021 as part of its Genesis Rail ServicesDealroom has a profile for this one. Try Dealroom → platform.
What's the endgame? Under Auxo's ownership, Ferrovia grew through organic expansion and acquisitions into the nation's largest player in its niche. The Michigan-based firm credited its operations team and growth strategy for the outcome.
What changes? Proceeds flow back to Genesis Rail Services, which continues under chief executive officer Rance Randle. The capital funds new equipment, product development including a recently introduced Track Sweeper, and further acquisitions.
"The additional capital provided by the sale of our vegetation management division allows us to accelerate our investments in equipment to expand existing service lines," Randle said.
Why it matters: The deal delivers a return at a time Auxo says is difficult for sellers. "Auxo delivers a strong return and liquidity for our investors at a time when many sponsors are struggling to do so," said managing partner Jeff Helminski.
Northborne PartnersDealroom has a profile for this one. Try Dealroom → advised Genesis Rail Services and Ferrovia, with Miller Johnson LLPDealroom has a profile for this one. Try Dealroom → and BDO USA, LLPDealroom has a profile for this one. Try Dealroom → also serving as advisors. Mercantile Bank of MichiganDealroom has a profile for this one. Try Dealroom → and Graycliff PartnersDealroom has a profile for this one. Try Dealroom → financed Auxo during its ownership.
The signal: The exit shows lower middle-market sponsors can still find buyers and liquidity in a tight environment, particularly for consolidated leaders in specialised industrial niches.
Image credit: Russ Nelson
