Cathcart Rail Closes Acquisition of the Railcar Repair Business of The Andersons, Inc.

CATHCART RAIL CLOSES ACQUISITION OF THE RAILCAR REPAIR BUSINESS OF THE ANDERSONS, INC. ADDS NUVEEN AS EQUITY STAKEHOLDER 

Acquisition creates the largest coast-to-coast railcar services network in the industry.

July 14, 2022 (Roslyn Heights, NY) – Cathcart Rail (Cathcart) has completed its previously announced acquisition of the railcar repair business of The Andersons, Inc. (Nasdaq: ANDE). Additionally, Cathcart and Star America Infrastructure Partners, LLC (Star America) are pleased to welcome Nuveen, a leading global investment manager with over $1.2 trillion of assets under management, as an equity stakeholder alongside Star America.

“The Andersons railcar repair network aligns perfectly with Cathcart Rail’s strategic goal of offering a broad array of rail services across a national footprint, and we are excited to welcome The Andersons employees to the Cathcart family” said Casey Cathcart, Chairman & Chief Executive Officer of Cathcart Rail. “With the addition of The Andersons railcar repair network, Cathcart Rail’s nearly 1,000 employees across 110+ locations make it the leading railcar services company in the country.”

“Cathcart’s acquisition of The Andersons’ railcar repair business is another major step in its development” said Christophe Petit, President of Star America. “Cathcart and Star America are excited to have Nuveen join us as an equity stakeholder, and we are looking forward to working alongside Nuveen to continue building a premier rail services company.”

“Nuveen’s Infrastructure team is excited to partner with Cathcart and Star America as we continue to grow and diversify our transportation portfolio,” said Andrew Diehl, Sector Head of Private Infrastructure at Nuveen. The Private Infrastructure team at Nuveen builds on more than 20 years of energy and infrastructure investing to select and structured direct equity infrastructure investments such as I-595, which was named P3 Awards 2020 North American Best Operation Transport Project. Nuveen’s infrastructure portfolio is over $3 billion with investments in power, transportation, digital and social sectors. The diversified portfolio has included equity, high-yield debt, and convertible debt.”

“It is a privilege to work closely with Cathcart’s management team and equity partners to build the leading railcar services company in the country with a rapidly growing national footprint offering a broad array of freight rail services,” said Milbank LLP Global Project, Energy & Infrastructure Finance Partner Allan Marks, who acted as counsel to Cathcart Rail. Marks added, “We are excited to represent Cathcart Rail on its acquisition of The Andersons’ railcar repair business, its new corporate debt facilities, the equity investment by Nuveen, and other transactions.”

“Our railcar repair employees are among the most skilled and experienced in the railcar industry, and they have been critical to our success,” commented Joe McNeely, President, The Andersons Nutrient and Industrial business. “We thank them for their contributions and commitment to The Andersons and our customers throughout the sales process. We are excited for them and the growth opportunities that Cathcart Rail will provide them.”

The transaction was supported by a senior loan syndicate led by Bank of America, N.A. and BofA Securities, Inc., with Wells Fargo Securities, LLC serving as financial advisor to Cathcart. Milbank LLP served as legal counsel to Cathcart, Morgan, Lewis & Bockius LLP as counsel to Nuveen, and Kelley Drye & Warren LLP as counsel to The Andersons. Railroad Financial Corporation served as transaction advisor to The Andersons, while other advisors of Cathcart included Ernst & Young and Taft Stettinius & Hollister LLP.