American Track Services Acquires Universal Rail Systems
Formation of North American Rail Solutions
FORT WORTH, Texas, April 17, 2023 – American Track Services (ATS) announced the acquisition of Universal Rail Systems (URS) in Canada. At the same time, the company launched a new parent brand, North American Rail Solutions. As a result, ATS and URS now operate under one unified structure. This move strengthens their position across North America.
Unified Operations Across North America
ATS will continue serving customers in the United States. Meanwhile, URS will focus on customers in Canada. However, both companies will work together under North American Rail Solutions. This approach allows them to expand reach and combine capabilities. In addition, the organization can now deliver a broader range of rail services. These services support businesses across multiple industries.
Leadership Structure
Thomas Lucario will serve as CEO of North American Rail Solutions, ATS, and URS. Ken Reger will take on the role of CFO. Meanwhile, Tim McMillan will serve as President and COO of URS and lead Canadian operations. He will also join the Board of Directors of North American Rail Solutions.
Strategic Vision
Thomas Lucario explained that this move creates unmatched capabilities in the rail industry. He also noted that the combined team brings deep experience and strong customer focus. Because of this, the company can now support customers across a wider range of projects. It can also respond faster and more efficiently. Furthermore, ATS and URS share the same values. Both organizations prioritize service quality, responsiveness, and long-term partnerships.
Growth Opportunities
Tim McMillan highlighted the benefits of combining resources and expertise. He explained that the partnership will improve service levels across North America. As a result, customers will gain access to more capabilities and better support. The company also expects continued growth in both markets.
DFW Capital Partners Involvement
In 2021, DFW Capital Partners acquired American Track Services. Since then, the firm has supported rapid growth through both expansion and acquisitions. Today, ATS operates from 12 full-service offices across the United States. It provides services that ensure the safety, compliance, and performance of rail infrastructure. The company serves industries such as manufacturing, petrochemical, mining, agriculture, food production, ports, and rail networks.
Transaction Details
ATS acquired URS from an investor group led by TorQuest Partners. Advisors included Northborne Partners and Lazard. In addition, DFW Capital Partners invested further equity into the company. PineBridge Investments also supported the transaction as the existing lender. Financial terms were not disclosed.
Strengthening Market Position
This acquisition expands the company’s presence into Canada. It also strengthens relationships in key rail segments. Overall, North American Rail Solutions is now positioned as a leading rail services provider across North America.
North American Rail Solutions
Headquartered in Fort Worth, Texas, North American Rail Solutions is an international railroad services organization serving clientele across the continent. The organization’s unmatched reach is supported by an interconnected network of entrenched local offices and entities, enabling the team to respond to any railroad issue, anywhere within the United States or Canada. North American Rail Solutions (www.NorthAmericanRailSolutions.com) is a portfolio company of DFW Capital Partners.
American Track Services
Headquartered in Fort Worth, Texas, American Track Services is the leading independent provider of turnkey railroad design, repair, maintenance, construction, inspection, and terminal services for critical rail infrastructure at industrial, short-line, municipal, and logistics sites in the United States. www.AmericanTrack.com
Universal Rail Systems
Headquartered in Edmonton, Alberta, Universal Rail Systems is the leading railway infrastructure service provider in Canada, operating out of 12 locations across Canada from West coast to East Coast. URS is the largest provider of industrial rail inspection, maintenance, construction and terminal services in Canada. In addition, URS provides Class I and Transit customer support services including construction, flagging, signals, and ticketing. www.universalrail.com
DFW Capital Partners
DFW Capital Partners is a private equity investment firm focused on lower middle-market companies. With ~$2 billion under management, the firm concentrates on service companies, with an emphasis on outsourced business and industrial support services, and healthcare companies. DFW has established a 20+ year track record of success in both building leading companies and recognizing attractive returns for its investors. DFW is headquartered in Teaneck, New Jersey and maintains an office in Chevy Chase, Maryland. Additional information is available on DFW’s website at www.dfwcapital.com.
TorQuest Partners
Founded in 2002, TorQuest Partners is a Canadian-based manager of private equity funds. With more than C$3.5 billion of equity capital under management, TorQuest is currently investing from TorQuest Partners Fund V, a C$1.4 billion fund that closed in March 2020. TorQuest invests in middle market companies and works in close partnership with management to build value. To learn more about TorQuest, please visit www.torquest.com.