Global law firm Ashurst Perkins Coie has advised InfraRed Capital Partners (“InfraRed”), a leading international infrastructure asset manager, on the acquisition, via InfraRed-managed funds, of 100% of Hector Rail, the largest private rail freight operator in Scandinavia, from Ancala.
The business is a full-service rail freight operator providing essential services to customers across a range of sectors, including timber and pulp, intermodal freight and energy. Hector Rail operates a fleet of approximately 100 predominantly electric locomotives across Sweden, Norway and Denmark. It also has a presence in Germany, Europe’s largest freight market, and is one of only a few companies that run rail freight between Sweden and Germany.
Hector Rail has long-standing relationships with a diversified base of blue-chip commercial and industrial customers, and revenues are supported by multi-year contracts with inflation-linked pricing. Rail freight forms an important part of regional supply chains across Northern Europe and is expected to benefit from a supportive policy backdrop and structural trends underpinning the long-term modal shift from road to rail. Additionally, the Fehmarnbelt Tunnel, connecting Denmark to Germany, is due to open in the early 2030s and is projected to strengthen rail connectivity between Scandinavia and continental Europe.
Hector Rail combines a strong position in the Scandinavian rail freight market with clear opportunities for organic growth and active value creation. To meet rising customer demand, planned investment includes additional locomotives and a programme of heavy maintenance and upgrades. InfraRed believes its extensive experience in the rail sector, together with Hector Rail’s established management team, can help accelerate the next phase of the business’s development.
Commenting on the transaction lead partner, Jacob Gold, said: “We are pleased to have advised InfraRed on this strategically significant acquisition. This transaction underscores the continued attractiveness of high-quality rail logistics businesses in the Scandinavian market.”
The Ashurst Perkins Coie team was led by partner Jacob Gold and senior associate Jade MacDonald, supported by associates Gareth Mair, Michael Choi, Rosie Swanborough and Rachel Edelstyn, together with Frankfurt-based partner Sebastian Daub, senior associate Johannes Porsch and associate Caspar Graf von Westerholt.
Partner Patricia Allen and senior associate Shayaan Zaraq Bari advised on tax matters, and partner Sarah Gant, senior associate Daniel Smith, and associates Jose Soto Trujillo and Sasha Sawant advised on banking aspects. Competition law advice was provided by partners Steven Vaz and Sergej Brauer, senior associate Laura Carter, and associate Sarah Schaible. The wider team included projects partners Terence van Poortvliet and Sascha Arnold, senior associate Sam Newman and associate Neele Schauer, and a team in Germany comprising counsel Lukas Muller and Alexandra Westerhaus and associates Johanna Kunze and Vincent Kurz.
