Northborne Partners

MINNEAPOLIS, MN – January 29, 2025 – Northborne Partners is pleased to announce that it served as the exclusive financial advisor to Lehigh Valley Rail Management (“LVRM”) in connection with its acquisition by Phoenix Rail, a newly formed short line railroad platform established by Ancala and Arkadia Rail Partners (formerly Brookhaven Rail Partners). Financial terms were not disclosed.

LVRM owns and operates a 61-mile freight rail network and intermodal terminal in Pennsylvania. Through its rail operations in Bethlehem and Johnstown, LVRM provides competitive access to three Class 1 railroads in North America: Norfolk Southern, CSX and CPKC. The railroads are situated between multiple major metropolitan areas including New York City, Philadelphia, Baltimore and Washington DC. Its intermodal terminal and freight services are critical for enabling the transportation of freight through Northeastern USA.

Phoenix Rail is led by a highly experienced management team with proven capabilities in growing and improving short line rail businesses over three decades. The team includes CEO Alex Yeros, COO Ross Grantham, CFO Jack Sullan, and Chief Strategy Officer Jim Crawford. Most recently, Arkadia acquired Pioneer Lines, a short line holding company with 15 railroads across the US. The Arkadia team transformed it into a high performing organization, improving its freight volumes and infrastructure, as well as its safety and financial performance, before selling the business in 2022. Prior to Pioneer Lines, the principals of Arkadia were involved in establishing, managing and growing OmniTRAX, a network of more than 20 short line and regional railroads in North America.

Ancala is a leading infrastructure manager based in the United Kingdom and recently opened an office in New York in 2024. The LVRM transaction marks Ancala’s second infrastructure investment in North America, following the acquisition of Noventa Energy in 2023. Ancala has a significant controlling stake in the business and will work alongside the Arkadia team to build the Phoenix Rail platform into a best-in-class owner and operator of railroads and rail-related businesses.

Ben Marks, Managing Director at Northborne, commented, “Short line rail continues to be amongst the most highly sought after verticals within the North American infrastructure landscape. It was a privilege to work with the owners of LVRM to identify a partner who is committed to lead the company into its next phase of growth.”

Northborne is the leading middle market advisor to businesses in the rail & rail services industry. LVRM marks Northborne’s 12^th completed rail-related transaction in the past three years.

About Northborne Partners

Northborne Partners is a preeminent middle market investment banking firm focused on providing M&A advisory services to companies in the industrial, healthcare and food & consumer sectors, among others. It specializes in advising private-equity-owned and closely-held businesses on complex sell-side transactions. Northborne Partners is headquartered in Minneapolis, MN. For more information, please visit northborne.com.

About Phoenix Rail

Phoenix Rail is a short line railroad holding company that is led by CEO Alex Yeros alongside a highly experienced management team. The team has proven capabilities in growing and improving short line rail businesses and is actively looking to expand the business through acquisitions and organic growth opportunities. Leading independent infrastructure manager Ancala is providing capital and expertise to enable Phoenix Rail’s growth plans.

Phoenix Rail currently owns and operates LVRM, a 61-mile freight rail network and intermodal terminal in Pennsylvania, USA. Through its rail operations in Bethlehem and Johnstown, LVRM provides connectivity to three Class 1 railroads in North America, Norfolk Southern, CSX and CPKC.

About Ancala

Ancala is a leading independent infrastructure manager that delivers infrastructure investment differently. We take a unique entrepreneurial and collaborative approach to consistently deliver results for our investors, the companies in which we invest and other stakeholders.

For more information, please visit www.ancala.com

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About Arkadia Rail Partners

Arkadia Rail Partners (formerly Brookhaven Rail Partners) is a privately held infrastructure investment and management firm. For three decades, Arkadia’s principals have invested in and operated short-line railroads, deep water ports, and terminals, building a leading short-line railroad holding company and establishing award-wining rail-served industrial parks. Arkadia specializes in developing critical transportation assets that support industry, and promote new economic development, community investment, and job creation.