Watco Secures Over $600 Million Investment for Future Expansion and Growth

Significant Investment for Growth: Watco's Future

Watco Companies, LLC, recognized as a prominent player in the transportation and logistics sphere, has made headlines with a remarkable investment worth over $600 million from Duration Capital Partners. This significant funding will not only boost the company's growth initiatives but is also a strong endorsement of its strategic vision.

A Vote of Confidence in Watco

Dan Smith, the Chief Executive Officer of Watco, expressed the depth of this investment by stating that it represents more than just capital; it's a long-term vote of confidence in their people, strategy, and future. The leadership at Watco believes this will empower them to foster sustained growth alongside their clientele.

Strategic Objectives at the Heart of the Investment

The capital raised will primarily support Watco's long-term strategic objectives, which includes a noteworthy step—securing full ownership of Industrial Rail Services. This operation manages rail assets at six Dow Chemical facilities scattered throughout the U.S. and Canada. By achieving 100% ownership over these crucial assets, Watco is poised to enhance its operational capabilities and service quality.

Commitment to Excellence and Partnership

Rick Baden, Executive Vice President and CFO of Watco, echoed the thoughts of their founding partners by emphasizing the shared commitment to excellence and long-term strategies that align both companies. These are values that define their partnership with Duration Capital, which has matured through various successful transactions since 2018.

Duration Capital's Co-CEO, Josh Connor, articulated the enduring strength of their relationship with Watco, highlighting the company's focus on safety, customer service, and operational excellence—qualities that align perfectly with Duration's investment philosophy. Emmett McCann, another Co-CEO, added that their collaboration has developed into a deep partnership that has enabled many customers to expand their business operations significantly.

About Watco

Watco, operating since 1983, is a transportation service company managing a diverse array of assets including short line railroads, terminals, ports, and mechanical shops mainly spread across North America and Australia. With a dedicated workforce of nearly 5,000 employees, Watco has a storied history of growth alongside its customers. Comprehensive details about their services can be explored at watco.com.

About Duration Capital Partners

Founded in 2024 from a spin-out of Oaktree Capital, Duration Capital Partners is dedicated to private investment, focusing specifically on the long-term goals within North American transportation infrastructure. Presently overseeing over $4 billion in assets, their strategy encompasses essential services and investments across rail, ports, and aviation sectors. For further information, visit durationcapitalpartners.com.

This substantial investment signifies a pivotal step for Watco, positioning the company for a fruitful future as it continues to embody operational excellence and customer-focused service in the transportation industry.