Arcapita buys Freightliner

UK private equity houses Electra Partners and 3i have sold UK industrial transportation company Freightliner to Arcapita, the Baharain-based investment firm, in a deal worth €434m.

Electra made £71.1m from the sale of the business it first backed in 1996 to the tune of £2.5m when Freightliner was privatized by British Rail. The investment has generated over £100m for Electra over the last twelve years, achieving an IRR of 46%.

Freightliner has three separate divisions: Intermodal, which provides rail transportation for containers from deep sea ports inland; Heavy Haul, a supplier to the bulk freight market, and International, a recently established business operating in Poland and Germany.

Qaisar M. Zaman, head of Arcapita’s European asset-based business, said: “We believe that the growth opportunity for rail, as a critical component of national transport strategies, is very promising. Freightliner has already built a leading market position in the UK, and we are confident that the management team has the experience and track record to replicate this success, as they continue to roll-out the group’s strategy for international expansion.”