Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based private equity firm, announced today that it has partnered with management to complete the acquisition of Regional Rail, LLC (“Regional Rail” or the “Company”). Regional Rail is a leading operator of short line railroads and rail-related businesses in the United States. Formed in 2007, Regional Rail acquired several short line railroads in the mid-Atlantic region serving a broad range of customers in markets including agriculture, lumber, energy and metal products. The Company’s wholly owned subsidiary, Diamondback Signal, provides engineering, construction and maintenance for highway rail crossings throughout the United States. Regional Rail is headquartered in Kennett Square, PA.

Regional Rail is the fifth investment from Levine Leichtman Capital Partners SBIC Fund, L.P. According to Lauren Leichtman, Co-Founder and CEO of LLCP, “We are excited to partner with Bob Parker, Al Sauer and the rest of the management team who have assembled very strategic assets serving the logistics needs of a diverse set of customers throughout the region. These railroad veterans have done a great job acquiring undermanaged railroad assets and improving the operational performance to create value.”

Regional Rail’s management team will retain significant ownership and will continue to lead the Company. Regarding the transaction, Bob Parker commented, “Having a partner with a long history of successfully investing in operating entrepreneurs to execute their growth strategy was key to us in selecting our new financial partner. LLCP’s resources and experience will be invaluable as we move into our next phase of growth.”