Southfield Capital Advisors Completes Acquisition of Hallcon Corporation
April 15, 2011
Greenwich, CT - Southfield Capital Advisors, a private investment firm focused on the lower middle-market, announced today that it has acquired majority ownership of Hallcon Corporation. Hallcon is a leading provider of specialty outsourced services to the railway and transit sectors in North America. Hallcon’s senior management team will continue in their current roles and will maintain a minority ownership position in the company. Additional terms of the transaction were not released.
Founded in 1954 and headquartered in Toronto, Ontario, Hallcon provides rail operators with a complete outsourced solution for their crew transportation operations. In addition to the actual ground transportation, Hallcon manages its customers’ trip booking, dispatching, billing and reporting through the use of the Company’s proprietary software platform. Hallcon has established a dominant share in the Canadian crew transportation market and was recently awarded its first national contract to provide and administer crew transportation in the United States.
In addition to crew transportation, Hallcon provides passenger coach and train station cleaning for commuter rail systems in North America. By outsourcing non-core cleaning activities to Hallcon, customers are able to focus on their core strengths while reducing costs and meaningfully improving the service provided.
Tony Plut, President and CEO of Hallcon, commented on the transaction, “When selecting a partner, the Hallcon management team was focused on identifying a firm that could provide the operational, strategic and financial support to best position the Company for future success. In addition to helping us manage our current growth, we believe Southfield Capital will help us identify and pursue new opportunities and assist us in implementing best practices across the entire platform. In collaboration, we expect to be able to continue on our exciting growth path and to fortify our industry leading position in North America.”
Southfield Capital Operating Partner, Vince Tyra, commented, “We are excited to have the opportunity to invest alongside such a talented management team with a proven track record and an unrelenting drive to make Hallcon a best-in-class provider of rail services in North America. Southfield Capital firmly believes that Hallcon is the ideal platform to take advantage of the favorable macroeconomic trends within the North American rail industry, which include considerable private and public investment towards freight and commuter rail and a concerted push among rail operators towards outsourcing non-core activities.”
Finn Dixon & Herling LLP provided legal counsel to Southfield Capital.
About Southfield Capital
Southfield Capital is a private equity firm that invests in exceptional, growing companies in the
lower middle market. The firm makes control investments in North American companies
generating $4 - 12
million in EBITDA with proven business models, attractive growth and
profitability trends, and strong leadership. For more information, please visit
Heb James, Partner