Quantum completed the acquisition of RailCrew Xpress, an industry leading provider of logistics services to Class One railways. To create value by expanding and protecting margins, Quantum teamed with management to rapidly consolidate the sector, completing three equity financed follow-on acquisitions within the first year of ownership: (i) Brown’s Crew Car of Wyoming, (ii) JLS, Inc., and (ii) Raudin McCormick, Inc. Today, RailCrew enjoys industry leading market share, expanding margins, and low leverage. Quantum’s LTM EBITDA acquisition multiple has been reduced to less than 2.5 as a result of the synergies already achieved. RailCrew Xpress has 875 vehicles, 1,354 employees and a footprint within eighteen states.
Quantum successfully completed the purchase and sale of its interest in Don Best Sports to Fun Technologies (AIM/TSX: FUN) for $50 million more than Quantum’s initial investment. Don Best Sports, based in Las Vegas, is the premier sports information provider of real time and accurate sports lines data (“odds”). Fun Technologies was subsequently purchased by Liberty Media (NYSE: L).