Portchester Equity has broadened its UK rail portfolio by acquiring UK-based rail engineering service company Yellow Rail.
Financial details of the deal have not been disclosed.
Portchester Equity’s current rail portfolio consists of WH Davis Group, which itself is made up of train designer and manufacturer WH Davis and Davis Wagon Services, a maintenance and repair services company.
The private investment company says that the acquisition of Yellow Rail “creates strong synergies” with these existing rail assets, well-established business relationships, and portfolios.
“This is a perfect fit within our multi-industrial manufacturing side of the group, where we will be able to improve our capability to passenger and rail customers,” says Paul Bragg, managing director of Portchester Equity.
Founded in 2007, Derby-based Yellow Rail offers safety-critical maintenance, bogie overhaul, engineering design, material supply, field services, and mobile wheel re-profiling.
Portchester Equity says the acquisition is a “significant step up” for the group of companies, saying they are now able to offer more ambitious services to the market.
Andy Kevins, managing director of Yellow Rail, believes the acquisition could accelerate the growth of the company with the support of Portchester Equity.
“This acquisition provides increased security for our amazing staff, access to an excellent rail-connected facility, and the opportunity to work with other companies in the same group, to increase our overall capability and service offering,” said Kevins.
“After 16 years as an independent SME, Yellow Rail is looking forward to playing its part in a bigger rail family.”
The rail service company will benefit from the acquisition by gaining access to WH Davis Group’s rail-connected facility at Shirebrook for both passenger and freight projects.