GB Railfreight sold to Infracapital
EQT’s infrastructure portfolio company, Hector Rail Group, has sold the business to the unlisted infrastructure equity arm of M&GPrudential
Swedish private equity firm EQT Infrastructure II announced that Hector Rail Group agreed to sell its British subsidiary GB Railfreight to London-based Infracapital, the infrastructure equity arm of M&G Prudential.
Established in 1999, with a turnover of over £200 million a year GBRf is Britain’s third-largest rail freight operator, employing 900 staff and operating 1,000 trainloads a week, to move 23% of Britain’s total rail freight tonnage thanks to a fleet 180 locomotives and 1,500 wagons.
EQT Infrastructure II had acquired GBRf from Eurotunnel in November 2016; over past three years the railway company has grown expanding across the UK and into new freight markets, among which the intermodal market; new route include a Southampton to Manchester intermodal service launched earlier this month, serving one of the UK’s leading deep-sea container ports. In 2016 GBRf only served one deep-sea port (Felixstowe). Under EQT Infrastructure ownership revenues have grown by 60% while the fleet has increased by 40%.
EQT Infrastructure will retain ownership of Hector Rail AB, which operates in Scandinavia, and Hector Rail GmbH in Germany.