PNC Earns 7.6x Return with Railroad Company

PNC Equity Partners announced that it has sold Tangent Rail to Stella-Jones (TSX: SJ) for $165 million. The sale, along with previous dividend recaps, generated a 7.6x cash-on-cash return on PNC's initial investment and a gross IRR of 98%. The company's EBITDA while owned by PNC grew from $8 million in 2005 to over $28 million in 2009. Tangent provides crossties, treated wood products, and switching and track maintenance services to the railroad industry.