Swedish train haulage provider and EQT Infrastructure II portfolio company Hector Rail Group has signed a definitive agreement to divest its British subsidiary GB Railfreight to Infracapital.

Established in 1999, GB Railfreight provides freight and non-freight haulage services in the UK. It is said to be the third-largest rail freight operator in the UK with a turnover of more than £200m.

GB Railfreight employs 900 people and operates 1,000 trainloads every week, transporting around 23% of UK’s total rail cargo.

The company’s fleet comprises more than 180 locomotives and 1,500 wagons. Its customers include Network Rail, Bombardier, Drax, MSC, Tarmac and Aggregate Industries.

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In November 2016, the company was acquired by EQT Infrastructure II through Hector Rail.

According to EQT, GB Railfreight’s revenues grew by 60%, while its railway fleet improved by around 40% in the last three years.

GB Railfreight founder and CEO John Smith said: “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.

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

Following the divestment, the remaining businesses of Hector Rail, which includes operations across Scandinavia and Germany under separate entities, will continue to offer train haulage services.

The transaction with Infracapital is expected to close next month.