FTAI Infrastructure announced that it has completed the acquisition of AP Shale Logistics ManagementCo, which does business as Tidewater Logistics.
Tidewater Logistics is a barge and rail transloading company with operations in Ohio, West Virginia, and Texas.
FTAI Infrastructure acquired Tidewater for approximately $45 million in cash.
The acquisition was funded through an upsizing of FTAI Infrastructure’s existing term loan with existing lenders.
Tidewater is an established transloading platform serving producers, shippers, and industrial customers across key shale and energy markets in the Appalachian Basin and Gulf Coast region.
FTAI Infrastructure said the business is highly complementary to its Wheeling & Lake Erie Railway.
The company expects Tidewater to generate $9 million of adjusted EBITDA over the next 12 months.
FTAI Infrastructure also sees potential upside from expanded customer relationships, higher throughput volumes, and integration with its broader rail platform.
The acquisition aligns with FTAI Infrastructure’s strategy of investing in critical infrastructure businesses with defensible market positions, stable cash flows, and growth potential.
FTAI Infrastructure primarily invests across rail, ports and terminals, and power and gas infrastructure.
The company is externally managed by an affiliate of Fortress Investment Group.
Calfee, Halter & Griswold served as legal counsel to FTAI Infrastructure in connection with the acquisition.
KEY QUOTES:
“Tidewater Logistics is a natural fit for FIP’s growing infrastructure platform. Tidewater’s barge and rail transloading capabilities are highly complementary to our existing railroad assets, and we see meaningful opportunities to expand Tidewater’s customer base and throughput volumes across its network of strategically located facilities.”
“We continue to pursue high-quality infrastructure businesses with defensible market positions, stable cash flows, and compelling growth prospects, and Tidewater checks each of those boxes.”
Ken Nicholson, CEO of FTAI Infrastructure
