27 September 2019
Clifford Chance advises EQT on the sale of GB Railfreight
International law firm Clifford Chance advised EQT portfolio company Hector Rail Group on the sale of GB Railfreight, the UK rail freight operator, to Infracapital, the unlisted infrastructure equity arm of M&G prudential. The transaction is expected close in October 2019.
GB Railfreight was acquired by EQT Infrastructure II, through Hector Rail, in November 2016. The strategy during EQT’s ownership focused on driving sustainable growth, expanding into new segments and customers while continuing to provide best-in-class, environmentally friendly transport solutions in the UK rail market.
During EQT’s tenure, GB Railfreight experienced substantial growth through organic expansion of the contract portfolio into new segments and customers, and revenues have grown by 60%, while the fleet has increased by some 40%.
Clifford Chance has a longstanding relationship with EQT. The firm advised EQT on the initial acquisition and counselled both EQT and GB Railfreight through the duration of EQT's investment. The deal reflects Clifford Chance's continued focus on the private equity and infrastructure sectors in the UK and globally.
The Clifford Chance team was led by Christopher Sullivan, a Corporate Partner, and provided multi-disciplinary counsel from Gregory Scott, Corporate Senior Associate, Taner Hassan, Finance Partner, Sarah McAleer, Pensions Partner, and Chinwe Odimba-Chapman, Employment Partner.