Infracapital, the infrastructure equity investment arm of M&GPrudential, has acquired UK’s third-largest rail freight operator from EQT Infrastructure, the owner of Hector Rail AB
Infracapital, on behalf of the Infracapital Partners III Fund, is buying GB Railfreight from EQT Infrastructure portfolio company Hector Rail Group for an undisclosed sum. EQT acquired GB Railfreight from Groupe Eurotunnel around three years ago.
GB Railfreight, which provides freight and non-freight haulage services, moves approximately 23% of the UK’s rail cargo and operates well above 1,000 trainloads a week. Its fleet comprises more than 150 locomotives and almost 1,500 wagons.
The company has a presence in several larger deepsea ports in the UK, including Felixstowe, Southampton and London Gateway. It recently opened a new Southampton-Manchester intermodal service and operates several intermodal services over iPort Rail in Doncaster, including a shortsea intermodal link with Teesport.
John Smith, Managing Director at GB Railfreight and Hector Rail, said: “We have grown at an incredible rate under EQT. It has been a real pleasure working with EQT over the past three years to become a leading rail freight provider. As a business we are now entering an exciting time with Infracapital."