Antin Infrastructure Partners’ acquisition of Lake State Railway Company (LSRC) wins it the Americas Transport Acquisition of the Year for the IJInvestor Awards 2022 with one of the judges labelling it “a pretty cool deal”.

LSRC – the Michigan-based regional freight railroad with an impressive track record and runway for continued growth – was acquired by Antin’s Mid Cap Fund I on 8 March (2022).

This transaction piqued the judges’ interest as it was the first US investment in Mid Cap Fund I; the fourth overall US investment by Antin; and the third overall investment in Mid Cap Fund I.

LSRC is a 375-mile rail freight network, transporting more than 60,000 customer carloads per year. It provides an essential service as a critical component of the North American transport infrastructure supply chain.

Through interconnections with multiple Class I rail partners, LSRC provides bidirectional rail access between Michigan and the broader US to a diverse and durable set of customers across a range of industries.

The company’s solid and stable base business is bolstered by attractive growth prospects given its strategic location in an economically and regulatorily rail-friendly market.

LSRC benefits from high barriers to entry given its expansive rail network spanning the eastern corridor of Michigan’s Lower Peninsula and providing connectivity to the North American rail network.

Its business plan is underpinned by attractive long-term market fundamentals for rail including aging public road infrastructure and highway congestion, growing environmental pressure across industries to use more efficient modes of transportation, and a reconfiguration of supply chains due to trucker shortages.

LSRC represents one of the last remaining independent regional freight railroads of scale in the US and is positioned to become a significant rail platform in a deeply fragmented market.

The company has been a family-owned business since its formation in 1992, and has benefitted from a strong management team who will continue to lead the organization for the next chapter of LSRC’s growth.