• Hector Rail is the largest private freight train owner and operator in Scandinavia, with a growing platform in Germany
  • Founded in 2004 and headquartered in Stockholm, Hector Rail operates in a critical part of the rail freight value chain
    • The company provides traction service, i.e., locomotives and drivers to transport freight, as well as complementing services (mainly wagons and shunting)
    • Service offering focuses on block train provision to a range of blue-chip customers within various industries and intermodal services
  • Hector Rail owns the majority of its modern and eco-friendly core fleet, most of which are modern electric locomotives
  • The company primarily operates rail freight services in Sweden, Norway, and the Swedish-German rail freight corridor (through Denmark) with a growing domestic platform in Germany


  • DC Advisory (DC) provided M&A advice to Ancala throughout the acquisition process, including assistance with:
    • Process strategy and tactics,
    • Business plan review,
    • Financial modelling and valuation,
    • Due diligence coordination,
    • Advice on transaction documentation
  • Following the successful signing of the acquisition, DC ran a comprehensive financing process, including:
    • Key marketing materials (such as management presentations, IM and RfPs)
    • Lenders’ due diligence
    • Debt structuring; and
    • Assisting in drafting and negotiations of full documentation
  • A robust infrastructure financing package was completed for the company in December 2020


  • DC ensured the acquisition was successfully completed within a challenging timeframe
  • In June 2020, Ancala had signed an agreement to acquire 100% of Hector Rail and completed the acquisition shortly thereafter
  • Notwithstanding the difficult debt market conditions resulting from the Covid-19 pandemic, DC was able to deliver a successful financing outcome, and assist the company in raising debt from a group of leading European commercial lenders
  • A capex facility was also successfully negotiated to support future growth of the business
  • The refinancing will allow Hector Rail to continue to:
    • Strengthen its position as Sweden's leading independent green electric rail freight provider
    • Enhance their growing position in Germany; and
    • Support expansion of its existing fleet