New York City-based private equity firm Monomoy Capital Partners acquired Trinity Highway Products from its parent Trinity Industries Inc. (NYSE: TRN) for $375 million in December. With previous experience in the industrials sector, Monomoy had been closely following the infrastructure space for the right opportunity. Trinity Highway manufactures and leases commercial highway safety products including crash cushions, end terminals, guardrails and truck-mounted attenuators. Operating in a non-core division of publicly-traded Trinity Industries, Monomoy identified the opportunity to establish Trinity Highway as an independent platform and concentrate on its expansion and growth.

Complicated Carve-Out

Monomoy was able to overcome challenges in carving out Trinity Highway by working closely with the management team and seller. Given the complexities of a corporate carve-out of a publicly traded company, the deal required Monomoy’s operational expertise to influence the seller and stand the business up on its own.

Trinity was eager to close the deal before year-end. Monomoy finalized the transaction on December 31, less than 60 days from when the definitive agreement was executed. It was able to quickly prioritize the investment opportunity and secure six weeks of deal exclusivity. In this time frame, Monomoy’s combined investment and operating deal team accelerated its diligence to deliver a detailed separation plan and provide the seller’s board with certainty of execution on the transaction.

Growth Opportunities Ahead

Along with other tailwinds in the industry, the $1 trillion infrastructure bill signed into law last November allocates $110 billion for roads, bridges and other major projects, which presents additional opportunities for long-term growth.

Trinity Highway operates 14 manufacturing and rental distribution facilities in the U.S. and maintains sales offices across Europe, South America and Asia. As a standalone company with Monomoy’s backing, the company will have more flexibility to pursue growth initiatives including product development, international expansion and M&A.

For more Deals of the Year coverage, see Mergers and Acquisitions Reveals the 2022 Middle-Market Deals of the Year.