North American rail infrastructure group Regional Rail has expanded into Canada with the acquisition of a portfolio of freight rail assets from G3 Canada for an undisclosed amount.

The 3i-backed operator of short-line freight railroads has acquired Great Sandhills Railway and will also buy interests in three other freight rail assets located in western Canada.

The rail portfolio serves a diversified set of industrial customers across a range of agricultural and energy end-markets, Regional Rail said.

Al Sauer, president and CEO, Regional Rail, said: “We are looking forward to welcoming the employees of Great Sandhills Railway to our team and working together with our new partners to execute our top-line growth strategy.”

Rob Collins, managing partner and head of North American infrastructure, 3i, said: “The Great Sandhills Railway and other freight companies are a great addition to Regional Rail. We are excited to expand into the Canadian market, where we see significant industrial growth opportunities across the railroads.

“Since our initial investment in 2019, we have believed Regional Rail offers an attractive platform for consolidation and this acquisition further strengthens that conviction.”

Perry Pellerin, CEO, Great Sandhills Railway, said: “We appreciate the support G3 Canada has provided over the past several years and are excited to join the Regional Rail family of short-line railroads.

“The GSR shares Regional Rail’s focus on providing a high degree of customer service to our partners and we look forward to sharing best practices between our companies to help further grow our operations in Canada.”

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