OMERS snaps up rail infra company in secondary deal(2)

The private equity investor has bought US rail maintenance company Nordco for an undisclosed amount from Riverside, for whom the deal represents a 31% gross IRR. Financing for the acquisition was provided by GE Capital, Allied Capital and OMERS.

OMERS Private Equity, the Canadian private equity investor formerly called OMERS Capital Partners, has paid an undisclosed amount for Nordco, a Wisconsin-based rail maintenance company. Financing for the acquisition was provided by GE Capital, Allied Capital and OMERS.

Nordco deal announced today

OMERS acquired Nordco from US-based mid-market firm Riverside Company, for whom the sale represents a 5.1x gross cash-on-cash return and a 31 percent gross internal rate of return. Riverside had acquired the business in 2003 after a management-backed buyout and held Nordco as a cross investment between the 2000 and the 2003 Riverside Capital Appreciation Funds.

Nordco designs, manufactures and markets the equipment used in the construction, maintenance and repair of railroad tracks.