BLUEFIELD, WV (WVNS)– A private investment firm announced that it acquired Genesis Rail Services, LLC, based in Bluefield, West Virginia, and Roanoke, Virginia.
Genesis Rail Services, founded in 2009, provides maintenance, mechanical and construction services to Class I, Class II and industrial railroads in the country. The company patented a tie plate distribution system back in 2013. This system reduces costs and improves uptime for rail operators. Genesis works with companies including Amtrak, Norfolk Southern and others.
This is the first time Auxo Investment Partners ventured into the railroad industry. Auxo Investment Partners is based in Grand Rapids, Michigan. They partner with owners and management teams at transition points in their history.
“Given strong industry tailwinds and our company’s history of success, Auxo’s hands-on operational approach and impressive resources come at a perfect time,” manager Cody Harman said.
Harman managed the day-to-day operations of Genesis Rail Services since 2017. He said the goal is to eventually provide maintenance and mechanical services to all Class I and Class II railroads in the country.
Class I railroads are the largest in the country. They earn about $900 million in annual revenue; they also have an estimated $7.2 billion in repair costs.
“Genesis’ strong industry relationships, growing suite of innovative service offerings, and customer centric approach position the company for continued growth, especially as railways increasingly outsource maintenance of way services to more cost-effective third-party providers,” Auxo co-founder, Jeff Helminski said.
Executive John McPherson said after working for more than 50 years in the industry, the company is in a unique position to scale its operations and serve the market in an unprecedented way.