3i-backed Regional Rail, a leading owner and operator of short-line freight railroads across North America, has acquired the Cincinnati Eastern Railroad, a 70-mile railroad in Ohio.

The railroad provides freight hauling and storage services to an attractive set of customers across a variety of end-markets, including aggregates, food & agriculture, and paper products, and is poised to benefit from continued industrial development in the region. The acquisition further expands Regional Rail’s Midwest U.S. presence, which now includes seven railroads across Ohio, Indiana, and Illinois.

Al Sauer, President and CEO, Regional Rail, commented:

“The Regional Rail team and I are delighted to partner with the team at the Cincinnati Eastern Railroad. We look forward to building on the strong entrepreneurial culture at the railroad to further grow services with existing customers and support new opportunities.”

Rob Collins, Managing Partner, and Head of North American Infrastructure, 3i, commented:

“The acquisition of the Cincinnati Eastern Railroad is an exciting addition for Regional Rail and fits perfectly with our strategy of supporting local management as they strive to grow with customers, our Class I partners, and local communities. We look forward to providing continued support to Regional Rail for all future opportunities.”

Paul Didelius, Founder, Co-Owner of Cincinnati Eastern Railroad, and Chris Whitley, President, Co-Owner, commented:

“We are proud of what we have accomplished at the Cincinnati Eastern Railroad since we commenced operations in 2014. Having spent a lot of time with Al and the Regional Rail team, we believe they are the right partner for the railroad’s next phase of growth.”

Since partnering in July 2019, 3i and Regional Rail has grown from three railroads in the Northeast to sixteen freight railroad operations located across North America. The company provides freight transportation, car storage, and transloading services across the United States and western Canada. In addition to freight services, Regional Rail provides railroad crossing signal design, construction, inspection, and maintenance services to a diverse base of short-line and industrial customers in 20 U.S. states via the company’s Diamondback Signal subsidiary.

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