Ancala to acquire Hector Rail Group from EQT

15 June 2020 (Last Updated June 15th, 2020 14:54)

EQT Infrastructure II fund has agreed to divest its portfolio company, Hector Rail Group, to Ancala's European Infrastructure Fund II.

EQT Infrastructure II fund has agreed to divest its portfolio company, Hector Rail Group, to Ancala’s European Infrastructure Fund II.

The financial details of the transaction were not revealed. The deal will be completed in one to two months.

The deal also includes the purchase of Hector Rail GmbH from EQT.

Hector Rail is a privately owned train operator in Scandinavia. It also operates corridor traffic between Germany and Scandinavia.

Founded in 2004, Hector Rail employs around 250 locomotive drivers and more than 100 locomotives, which includes its operations in Germany.

Hector Rail offers environmentally friendly and sustainable freight transport via rail.

Ancala’s European Infrastructure Fund II provides investment in European mid-market infrastructure businesses.

Hector Rail AB CEO Claes Scheibe said: “With the support from EQT, Hector Rail has grown by adding a range of new freight services across the Scandinavian and German rail network, and supported the growth of the European economy through the transportation of essential goods and materials.

“We continue to see strong demand for our services and look forward to entering the next phase of growth together with our new owners.”

Ancala Partners managing partner Spence Clunie said: “Hector Rail delivers an essential service for its customers and the European economy.

“We look forward to working with the management team to help Hector’s customers grow and for Hector to provide a high level of service to customers, employees and all other stakeholders.”

In September last year, Hector Rail Group signed a definitive agreement to divest its British subsidiary GB Railfreight to Infracapital.