The combination of Cando Rail & Terminals with Savage Rail will create a market leader in first and last mile rail operating services and terminal infrastructure, officials with both companies said.
Cando Rail announced it had executed an agreement to acquire Savage Rail on Feb. 23. The combination will expand the geographic reach and customer service capabilities while maintaining a strong focus on safety, reliability and operational excellence, officials said. Officials said the deal will leverage Savage Rail’s position as a leading U.S. rail provider with operations across the U.S. and rail assets along the Midwest, Gulf Coast, and Southeast corridors.
The transaction will accelerate Cando’s U.S. expansion plans, while strengthening its network in Canada. Combined the two companies expect to operate a coast-to-coast network of assets with no geographic overlap that will include 36 railcar storage, staging, and/or transload terminals; three short-line railways; and 80 first and last mile rail service operations, as well as access to all six Class I railroads.
“The industrial rail environment is fundamentally different than a decade ago – customer supply chains are increasingly continental, and they choose partners that can support their evolving needs with greater reach and efficiency. Bringing Cando and Savage Rail together will create the leading integrated rail terminal and infrastructure company in North America to meet these needs and beyond,” Brian Cornick, president and CEO of Cando Rail & Terminals, said. “By combining two highly complementary teams and capabilities with Cando’s strong financial profile, we’re creating a stronger, more resilient platform to support our customers, team members, and communities today and invest for the long term. We are excited to welcome the Savage Rail team to the Cando family.”
Officials with Savage said the move will align with that company’s goals of growing its businesses and its people and create new opportunities for its rail services team to join a large, rail-focused company, while using capital from the sale to invest in expanding its food and fuel-focused businesses.
“This is a great opportunity for Savage Rail and Savage as a whole,” Savage’s president and CEO Jeff Roberts. “We’re excited about the additional offerings Cando will provide for our rail services customers as a pure-play rail company as well as the investment opportunities that this sale will provide for our other businesses.”