EQT Infrastructure II has submitted an irrevocable offer to acquire GB Railfreight, UK’s third largest rail freight operator.
EQT Infrastructure II (“EQT Infrastructure” or “EQT”) has submitted, through an indirectly owned company within the Hector Rail group (the “Hector Rail Group” or “Hector Rail”), an irrevocable offer to acquire GB Railfreight Limited (“GB Railfreight” or the “Company”) from Groupe Eurotunnel SE (“Groupe Eurotunnel”). The proposed acquisition is an integral part of EQT’s strategy to create a leading independent pan-European rail freight operator.
Founded in 1999 by the current CEO John Smith, GB Railfreight is the third largest rail freight operator in the UK, and provides a wide range of rail transport solutions and rail services to its customers. The Company’s team of 650 people operates over 1,000 trainloads a week, moving ~15% of UK’s rail freight. GB Railfreight has a fleet of over 130 locomotives and 1,100 wagons, transporting goods for customers including Drax, Network Rail, EDF Energy, MSC UK, Aggregate Industries and Tarmac.
“We would be very pleased with EQT as our new owner and strongly believe that EQT’s industrial approach and network, extensive rail freight experience and access to capital would be of valuable support to GB Railfreight in our continued growth ambitions”, says GB Railfreight’s CEO and founder John Smith.
“GB Railfreight is a company that understands its customers, staff, and the industry in which it operates. The focus on innovation and delivery of outstanding customer service are two key factors that make us believe that GB Railfreight would be an excellent fit with Hector Rail. We look forward to working in close partnership with GB Railfreight’s management team, to support the company in its continued growth ambitions”, says Bo Lerenius, Industrial Advisor to EQT and Chairman of the Hector Rail Group.
The acquisition is subject to consultation with Groupe Eurotunnel’s staff representative bodies, after which EQT Infrastructure and Groupe Eurotunnel are ready to quickly move forward with the transaction and enter into binding agreements.
