OMERS Private Equity, the private equity arm of the Ontario Municipal Employees Retirement System, has acquired railway parts manufacturer Nordco for an undisclosed sum from private equity firm Riverside.
Paul Renaud, president and CEO of OMERS Private Equity, said, “Nordco is a great addition to our North American portfolio with its market-leading position and long history of responding to the demands of its customers. We look forward to working closely with the management team to continue the growth and financial success of the business.”
Nordco’s CEO and president Bruce Boczkiewicz added, “We are extremely excited to partner with the OMERS team and look forward to our joint prospects. We expect to take our market leadership and already strong performance in this tough economy and leverage the OMERS support and expertise to reach even higher levels of performance in the future.”
The deal represents a 31 per cent gross IRR for Riverside, which acquired the company in 2003. Under the firm’s ownership Nordco made four acquisitions, which diversified its business into other areas of the railway industry including equipment repair and rebuilding, ultrasonic rail inspection and the manufacture of railcar movers.
Nordco, which has a manufacturing plants in Wisconsin and Ontario, supplies maintenance products to the Class 1 North American, regional and short-line railroads, equipment leasing companies and a number of industrial customers.
Toronto-based OMERS Private Equity has $4bn of investments under management and specialises in active ownership of businesses in North America and Europe.
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