The Carlyle Group Acquires Majority Ownership of Atlanta-based RMI
Management Team Focused on Continued Strong Growth for 28-Year-Old Transportation Services Firm
ATLANTA--(BUSINESS WIRE)--RMI, the largest independent provider of comprehensive rail information services to the transportation industry, today announced that global private equity firm The Carlyle Group has acquired a majority stake in the company. Financial terms were not disclosed.
Founded in 1979, RMI provides critical web-based transportation and logistics solutions for a variety of participants in the transportation industry, including short-line, regional, Class I and terminal switching railroads, railcar leasing companies, rail shippers and barge operators. RMI?s mission-critical, integrated services assist customers with many aspects of managing their operations, including transportation, equipment, freight and revenue management services.
RMI Chief Executive Officer J. Peter Kleifgen said, ?Now is the right time to re-capitalize 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. This is good news for our existing customers and for the future of RMI. We will have the resources to continue to pioneer new technologies and industry-wide initiatives, as well as to develop new business in related markets.? RMI was represented by Updata Advisors, Inc. in this transaction.
Carlyle Managing Director Charlie Moore said, ?RMI has a reputation for being fair, reliable and innovative. The company has partnered closely with and listened to its customers to create leading solutions. We will help maintain and build that great reputation.?
Carlyle Managing Director Steve Bailey added, ?We look forward to assisting the RMI management team in taking their dedicated customer focus and sophisticated suite of integrated services to other market segments in the U.S. and abroad.?
The internal operating structure of RMI will not change. The entire executive management team has invested in RMI and will remain in place to continue to build the company.
Funds for the transaction came from Carlyle Venture Partners III (CVP III), a U.S.-based multi-stage growth capital fund that invests in venture capital, growth equity and growth buyout transactions. CVP III invests primarily in companies that operate in growth sectors of the economy, including technology, technology-enabled services, business services, telecommunications, media and healthcare.
RMI is the largest independent provider of accurate, reliable, comprehensive and secure rail information services to the transportation industry. Founded in 1979, RMI is recognized as the most successful Business Services Provider (BSP) in the industry with an in-depth knowledge of rail operations and a proven ability to translate complex business processes into valuable management information services. Currently, RMI processes approximately seven million carloads annually for railroads, rail shippers and railcar owners. RMI?s services are accessed via the Internet through RailConnect? (www.railconnect.com), a web-based portal to the company?s integrated suite of proprietary information services, which are used to manage rail operations, improve customer service and reduce costs. Services include transportation, revenue, equipment, shipper freight and fleet management services and related executive information systems. RMI is an independent, privately owned company based in Atlanta. For more information about RMI, visit www.railcarmgt.com.
About The Carlyle Group
The Carlyle Group is a global private equity firm with $58.5 billion under management. Carlyle invests in buyouts, venture & growth capital, real estate and leveraged finance in Asia, Europe and North America, focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $28.3 billion of equity in 636 transactions for a total purchase price of $132.0 billion. The Carlyle Group employs more than 800 people in 18 countries. In the aggregate, Carlyle portfolio companies have more than $87 billion in revenue and employ more than 286,000 people around the world. www.carlyle.com.
Source: The Carlyle Group