Minnesota Commercial Railway Is Acquired by Regional Rail
Minnesota Commercial Railway (“MNNR” or the “Company”) has been acquired by Regional Rail, a portfolio company of 3i Group. Baird Business Owner Solutions served as exclusive financial advisor to MNNR on this transaction.
MNNR is an 86-mile railroad serving the Twin Cities area in Minnesota, with direct connection to four Class I rail networks, in addition to the Twin Cities & Western Railroad. The railroad provides freight-hauling, storage, and transload services to a diverse set of customers across a variety of end-markets, including metals, fuel & oil, chemicals & plastics, food & agriculture, and lumber. The Company also owns and operates Commercial Transload of Minnesota (“CTM”), which provides warehousing, transloading, and trucking services to local manufacturers in the region. The acquisition further expands Regional Rail’s North American network, which now includes 17 railroads across 9 U.S. states and 2 Canadian provinces.
Al Sauer, President and CEO, Regional Rail, commented: “We are honored that Becky Gohmann has entrusted Regional Rail to continue the legacy established by the late John Gohmann at the Minnesota Commercial, and we are excited to partner with the team at the MNNR and CTM to expand these operations and strengthen the business for the future. We look forward to building on the Company’s track record of high-quality service and providing the team with the expanded resources of our broader platform to drive additional growth.”
Rebecca Gohmann, Owner of the Minnesota Commercial Railway: “I am very proud of John’s leadership and dedication to the Minnesota Commercial Railway, as well as the dedication and hard work of our employees. I believe Regional Rail is a great fit to continue the legacy my husband started in 1987 of supporting our employees, our customers, and new growth opportunities.”
Chris Johnson, Director, Baird Business Owner Solutions: “We were very proud to perform this important work both on behalf of the Gohmann family, as well as the multitude of long-tenured MNNR employees who have a vested interest in the success of the rail. We look forward to observing the next phase of the business under 3i/Regional Rail’s stewardship.”
About Baird Business Owner Solutions
Baird’s Business Owner Solutions team advises lower middle-market and emerging growth companies and their owners on business transition, valuation, and M&A transactions.
