Hector Rail to be acquired by InfraRed Capital Partners and HICL

InfraRed Capital Partners and London-listed infrastructure investor HICL have reached an agreement to acquire Hector Rail, Scandinavia’s largest private rail freight operator, from Ancala.

Under the terms of the deal, funds managed by InfraRed Capital Partners will acquire 100% of the company from Ancala. HICL will participate by investing approximately $91 million to acquire a 42% stake in the Stockholm-based operator. The transaction is expected to close by December 31, pending customary third-party consents.

Founded in 2004, Hector Rail operates over 300 locomotives and provides freight services across Scandinavia and Germany. The investment is intended to facilitate the next phase of the company’s development, including fleet upgrades and service improvements. HICL noted that the acquisition represents its first ‘Enhancer’ investment under a revised strategy aimed at delivering higher medium-term returns.