Patriot Rail Company in the US has signed an agreement to acquire short line operator Salt Lake Garfield & Western Railway (SLGW).
The financial terms of the acquisition were not disclosed.
Overall, the scope of the acquisition will also include SLGW’s related entities Caballero and Caballero 2, storage and transload service providers.
The completion of the deal is subject to regulatory approvals and customary closing conditions.
Patriot CEO John Fenton said: “The agreement aligns with Patriot’s vision of future growth as a premier service provider in the US short line railway industry and complements the Patriot portfolio.
“SLGW provides premier service to its customers and we are honoured to carry that legacy forward.”
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Formed in 1891, SLGW is a Class III short line railroad company that offers rail services in Salt Lake City, Utah. The 26-mile-long line currently handles more than 6,000 loaded railcars a year.
In recent years, the company has added track and transload services with additional expansion plans next year.
SLGW CEO Mariana Mavor said: “As a family-operated business, SLGW has grown, especially over the last five years.
“This partnership with Patriot Rail affords us more access to expertise, resources and capital to serve the growing needs of our expanding customer base. We couldn’t be more thrilled about the prospects of a ‘bigger and better’ SLGW under the Patriot umbrella.”
Based in Jacksonville, Florida, Patriot Rail Company operates 12 regional and freight short line railroads, a rail excursion train and three rail-related services companies in the US.
This is notably the Patriot’s first bolt-on acquisition after it was bought by First Sentier Investors (FSI), a leading global investor in infrastructure, in October last year.