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Patriot Rail's legal counsel was Winston & Strawn. Pioneer Lines and BRX were advised exclusively by Northborne Partners, LLC.
Fremont, CA: Although it is relatively common to convey freight by road, there are loads for which the benefits of railroads cannot get overlooked. Rail transport may be a very effective alternative for the business supply chain if the shipment travels more than 1,000 miles and is not time-sensitive. Railroads operate on set transit timetables and do not share tracks with other vehicles as trucks do. Trains are therefore less affected by weather and traffic than vehicles are.
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Patriot Rail Company LLC has agreed to buy Pioneer Lines, Inc., a railroad holding company with 15 short-line railroads in 12 states, from BRX Transportation Holdings.
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The acquisition, which is subject to regulatory approval, will support Patriot Rail's growth strategy by expanding the company's short-line operations from 16 to 31 railroads, allowing an expanded Patriot to serve customers in new markets such as Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas, Michigan, Mississippi, Ohio, Pennsylvania, and Tennessee. In addition, patriot's acquisition of the important Pioneer short line property will also provide train consumers with more service alternatives across the United States.
"Pioneer Lines is a diverse rail company with talented professionals and deep customer relationships," said John E. Fenton, Patriot Rail's chief executive officer. "Pioneer Lines' safety culture and focus on operational excellence aligns directly with Patriot Rail's vision and mission. These synergies position us to continue to exceed customer expectations as a best-in-class rail partner to meet their freight shipment and logistics needs."
According to Fenton, Patriot Rail anticipates that this development will help generate new paths linking with US and worldwide markets, supporting economic growth and job creation.
Patriot Rail was advised on the deal by RBC Capital Markets. Patriot Rail's legal counsel was Winston & Strawn. Pioneer Lines and BRX were advised exclusively by Northborne Partners, LLC. Pioneer Lines and BRX received legal advice from Fried Frank, Arnold & Porter.
"The transformation of Pioneer into one of the top short line operators in North America is testament to the operational skill and hard work of Alex Yeros and the Pioneer team," said Andrew Right, Pioneer board member and managing partner of US InfraVest, Pioneer's majority investor. "US InfraVest, along with our partner investors, Stephens Capital Partners and Brookhaven Capital Partners, are honored to have been able to help Pioneer grow and look forward to its continued success in the years to come."
Patriot Rail board chair Deb Butler added, "Rail shippers will now have increased service options across a broader national footprint, and the integration of Patriot and Pioneer will further enhance our combined capability as a rail solutions partner dedicated to safety and customer growth."
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