One Equity Partners backs rail services firm Metro East Industries
What's the deal? One Equity PartnersDealroom has a profile for this one. Try Dealroom → (OEP), a middle market private equity firm, is investing in Metro East IndustriesDealroom has a profile for this one. Try Dealroom → (MEI), a national provider of railcar and locomotive maintenance and repair services. Terms of the private transaction were not disclosed. The Ortyl family, which founded MEI in 1990, remains part of the business through its next phase.
Who's involved? MEI, headquartered in Alorton, Illinois, serves Class 1 railroads, rail leasing companies, short lines, and other rolling stock and locomotive operators. Its main campus sits in the centre of the US, backed by six mobile service locations that extend its footprint nationwide. The company employs roughly 490 people after more than 30 years in business.
What's the endgame? OEP plans to fund MEI's growth through continued investment in base operations and a broader set of capabilities and services. "MEI is a differentiated leader in rail car and locomotive services," said Haley Citrome, vice president at One Equity Partners.
Why OEP? The firm, founded in 2001, spun out of JP Morgan in 2015 and has completed more than 500 transactions worldwide across the industrial, healthcare, and technology sectors. Rail services is a market where it has prior experience. "Rail is a vital pillar of the North American economy," said J.B. Cherry, partner at One Equity Partners.
What MEI says: "Our family is proud of the business we and the MEI team have built over the years," said president and co-founder Gayle Ortyl. Chief executive officer Rick Ortyl pointed to OEP's track record in specialty industrial services as the basis for the partnership.
The signal: The deal reflects continued private equity appetite for specialty industrial services tied to essential infrastructure. Rail maintenance offers steady demand and a fragmented supplier base — the kind of profile that suits a firm built around consolidating and scaling market leaders.
Read more: oneequity.com
Image credit: VISIT YOUR LOCAL AIR MUSEUM (HawkeyeUK)
