First State Investments (FSI) has closed the acquisition of Patriot Rail and Ports from SteelRiver Infrastructure Partners.

The financial details of the acquisition were not revealed.

Patriot operates 12 short line freight railroads with more than 585 track miles in 14 US states.

Based in Jacksonville, Florida, the company also has a port business in the south-east US.

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FSI said that this is its first unlisted infrastructure investment in the country. It currently manages unlisted infrastructure investments worth $8bn in the UK, continental Europe, Australia, New Zealand and North America.

FSI focuses on transportation and utility mid-market companies around the world.

The company currently manages around $156bn for different institutional and retail investors worldwide.

Following the acquisition, the acquired firm’s board of directors will include Patriot CEO John Fenton, FSI directors Gavin Kerr and John Ma, Patriot chairman Gilbert Lamphere, White Deer Energy former partner Alexander Lynch, Patriot vice chairman Chris McArthur and retired US Army lieutenant general Richard Timmons.

In addition to line haul and local rail service, Patriot also offers other rail-related services, including railcar storage, transloading, railcar cleaning, scrapping, repair and maintenance, and contract switching.

Services offered by Patriot’s ports business include terminal stevedoring, logistics and warehousing services across nine terminals. Furthermore, it offers two cold storage facilities in the south-eastern US.

Ma said: “Patriot, with its strong operating business and management team led by CEO John Fenton, is now a core asset in our global infrastructure investment portfolio.

“Railroads are long-life assets that provide essential transportation services to a diverse customer base. We are excited to support the Patriot team and see many opportunities to continue to expand the business in North America.”

First State Investments financed the deal through a term load offered by RBC Capital Markets and Barclays.

Barclays and Winston & Strawn law firm advised SteelRiver, while BC Capital Markets and Mayer Brown law firm advised FSI.