The acquisition is subject to customary closing conditions, including the effectiveness of the control notice of exemption filed with the Surface Transportation Board.
Chris Kinney, senior managing partner and CEO of SteelRiver Infrastructure Fund North America said, "Patriot is a highly-complementary asset to our existing investment portfolio; we believe that the company's scale and operating strategy will allow SteelRiver to capitalize on additional consolidation opportunities in the shortline rail industry in North America."
The transition to the new ownership is expected to be seamless, with no disruption in service to customers.
Kinney added, "We highly value the operating and management team at Patriot and want to ensure that they continue to serve their customers who have come to rely on quality rail service."
As part of the transaction, Patriot's founder, Chairman, President and CEO, Gary Marino, will retire from these positions upon closing and provide consultancy services to Patriot's management and its board. Marino, who formed Patriot in 2006, was the co-founder and former chairman, president and CEO of RailAmerica, Inc.
Marino said, "I am proud of what Patriot has accomplished since we formed the company, growing from an idea to 13 railroads in just over five years. Patriot's excellent management team has consistently delivered superior rail service to its customers. I am confident that Patriot will continue to demonstrate this success under SteelRiver's ownership."