Tangent Rail

The Story

Tangent Rail is a manufacturer and provider of maintenance-of-way products and services to Class I railroads, shortline railroads, and owners of industrial track. The company also provides treated consumer lumber products to lumber retailers and wholesalers.

Transaction Dynamics

A partnership with management to acquire a corporate divestiture from RailWorks Corporation.

Investment Thesis

  • Attractive market competitive dynamic with no clear secondary supplier for major customers
  • Well defined “micro market” with opportunity to build market share
  • Significant barriers to entry, including supply chain relationships, strategically located plants, and creosote licenses
  • Long‐term contracts and strong relationships with major customers lend stability to business model
  • Experienced management team dedicated to partnering for local growth
  • Strong outlook for industry driving organic future growth

Incline Value Enhancement

  • Refocused the company by divesting a non-core, capital intensive division
  • Actively evaluated six acquisition candidates
  • Recruited new CFO in 2008 to strengthen financial controls and reporting capabilities
  • Grew EBITDA from $10 million to $28 million
  • Completed three dividend recapitalizations during ownership
  • Sold to strategic acquirer for $165 million in 2010


Pittsburgh, PA


Specialized Light Manufacturing

Investment Date

October 2005





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