US-based private equity firm Levine Leichtman Capital Partners (LLCP) has partnered with management to complete the acquisition of Regional Rail, an operator of short line railroads and rail-related businesses in the US.

Established in 2007, US-based Regional Rail acquired several short line railroads in the mid-Atlantic region serving a broad range of customers in markets such as agriculture, lumber, energy and metal products.

Regional Rail subsidiary Diamondback Signal provides engineering, construction and maintenance for highway rail crossings across the US.

"LLCP’s resources and experience will be invaluable as we move into our next phase of growth."

Regional Rail is claimed to be the fifth investment from Levine Leichtman Capital Partners SBIC Fund.

LLCP co-founder and CEO Lauren Leichtman said: "These railroad veterans have done a great job acquiring undermanaged railroad assets and improving the operational performance to create value."

The deal will see Regional Rail’s management team retain significant ownership, as well as continue to lead the company.

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Regional Rail president Bob Parker said: "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."

LLCP has managed $7bn of institutional capital since its inception and it invests in middle market companies located in the US and Europe.