Anchorage Signs Definitive Agreement for the Sale of Rail First Asset Management

Anchorage Capital Partners (“Anchorage”) announces today that it has signed a definitive agreement for the sale of 100 percent of Rail First Asset Management (“Rail First” or the “Company”) to a consortium comprising Amber Infrastructure (“Amber”) and DIF Capital Partners (“DIF”).

VL Class (1)

Rail First is Australia’s leading provider of full-service vertically integrated rolling stock leasing and maintenance solutions to the rail industry. The company operates over 1,300 locomotives and wagons and has two strategically located workshops in Islington (South Australia) and Goulburn (New South Wales) which service a blue-chip customer base that is primarily focused on the intermodal market.

Rail First is an excellent example of Anchorage identifying a complex special situation opportunity early.

Under Anchorage’s ownership and the leadership of Rail First CEO Mark Kirkpatrick, the Company has been repositioned to focus on Australia’s growing intermodal sector; new systems and processes have been implemented; and material investment has been made in assets which have delivered strong, sustainable growth.

“We are proud of the significant operational improvement and growth of Rail First. Under Anchorage ownership, Rail First has doubled contracted earnings within three years and materially increased contract tenor, setting the company up for further growth,” Rail First Chairman and Anchorage Partner, Beau Dixon said.

“Rail First is an excellent example of Anchorage identifying a complex special situation opportunity early. Prior to Anchorage’s acquisition, Rail First was an underperforming, non-core asset and a highly successful change program was implemented under Anchorage’s ownership. Repositioning Rail First’s strategic direction, bringing in world-class management, and fixing the bottom line sustainably has delivered a high performing asset manager with a resilient business model,” Mr. Dixon said.

Mr. Kirkpatrick said “Rail First has thoroughly enjoyed the partnership with Anchorage to transform the business and was excited to work with Amber and DIF on the next phase of growth.”

Rothschild & Co. acted as financial advisor, Gilbert + Tobin acted as legal counsel and PwC acted as accounting and tax advisor to Anchorage.