EQT Infrastructure II acquires Hector Rail AB, a Sweden-based rail freight company
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The EQT Infrastructure II fund has agreed to acquire a majority stake in Hector Rail AB, a leading Sweden-based independent rail freight company, from investment entities advised by Höegh Capital Partners, the founders Mats Nyblom and Ole Kjörrefjord, and other minority owners.
Mats Nyblom will continue as CEO and Ole Kjörrefjord will become a board member, while EQT Industrial Advisor Bo Lerenius is envisaged Chairman.
Hector Rail was founded in 2004, supported by the Norwegian Høegh family. The company, headquartered in Stockholm, Sweden, has around 190 employees operating in Sweden, Norway, Denmark and Germany.
Hector Rail offers environmentally friendly transportation services of heavy industry products, raw materials, intermodal freight and passengers to clients such as industrial companies, forwarders, and other rail companies under medium term contracts. The company currently operates a fleet of around 50 locomotives and 10 shunters performing over 6 million train kilometres per year. Revenues amounted to approximately SEK 630 million in 2013.
Stefan Glevén, Partner at EQT Partners, Investment Advisor to EQT Infrastructure II, said:
"EQT has had a relationship with the Høegh family for many years and we are excited about acquiring Hector Rail from them. Hector Rail is a well-run business with a strong track record and excellent reputation. We are convinced that rail transportation will gain market share going forward and we see substantial value creation opportunities for the Company to be realized in cooperation with Mats Nyblom and his team."
Mats Nyblom, CEO and co-founder of Hector Rail, said:
"With EQT Infrastructure II as a new owner, we will continue to build on our successful business model and growth plan. We look forward to working together with EQT and to being able to leverage their growth focused approach and strong set of Industrials Advisors when embarking on this exciting journey."
Closing of the transaction is expected in the fourth quarter of 2014, subject to customary anti-trust approvals.