GB Railfreight set to be sold to Infracapital
Hector Rail Group owner EQT Infrastructure is selling its UK subsidiary GB Railfreight to Infracapital, the infrastructure equity arm of M&GPrudential.
GB Railfreight, one of leading rail freight operator in the UK, was acquired by EQT in November 2016, and has enjoyed substantial growth in the interim three years - revenues have grown by 60%, while the fleet has increased by 40%. Since 2016, GB Railfreight has expanded from being a one port only operator, to now having presence in several larger deep-sea ports in the UK, including Felixstowe, Southampton and London Gateway.
John Smith, CEO and founder of GB Railfreight, comments: “Together with EQT, the company has been able to continue on our strong growth trajectory, adding a range of new freight services across the UK rail network and supporting the growth of the UK economy by transporting goods and materials across the country. We continue to see strong demand for our services and look forward to entering the next phase of growth together with our new owners.”
Anna Sundell, Managing Director at EQT Partners and Investment Advisor to EQT Infrastructure, adds: “GB Railfreight has continued to grow and gain market share while continuing to foster a strong safety-oriented culture and best-in-class operations, ensuring that the company can deliver high-quality services to all its customers. Management and the entire GB Railfreight team have done a fantastic job. With the ever-increasing demand for environmentally friendly transport solutions, GB Railfreight continues to be very well positioned to continue on its strong trajectory under Infracapital’s ownership.”
Founded in 1999, GB Railfreight is the third largest rail freight operator in the UK. The company’s team of 900 people operate more than 1,000 trainloads a week, moving approximately 23% of the UK’s rail cargo. The Company has a fleet of omore than180 locomotives and 1,500 wagons, transporting goods for a wide range of customers, including Network Rail, MSC, Bombardier, Drax, Tarmac and Aggregate Industries.
Following the sale of GB Railfreight, the remaining part of Hector Rail, consisting of Hector Rail AB with operations across Scandinavia and Hector Rail GmbH, with operations in Germany, will continue as an independent train haulage and traction provider in the European rail transport market.
The transaction is expected to close mid-October 2019.
Posted on: September 26th 2019