Portfolio
Freightliner
| Sector | Industrials |
|---|---|
| Investment type | Buyouts |
| Region | UK |
| Status | Former investment |
Nature of Business
Freightliner Group is dedicated to the movement of freight by rail. Its services range from the rail haulage of commodities such as aggregates and coal, to the highly-efficient Logico operation performed in response to demand from freight forwarders, road hauliers and manufacturers, for a high-quality rail-based logistics service.
Currently it operates 160 locomotives, including 127 new Class 66s, and more than 3,000 wagons, including coal and aggregate hoppers. Freightliner carries up to 3,000 intermodal containers per day and runs over 1,200 heavy haul trains per week. The company has more than 1,800 staff.
Investment Overview
3i backed the initial buyout of Freightliner in 1996, when it was privatised by British Rail. We helped develop the business by strengthening the management team, refocusing its strategy and investing in a new fleet of locomotives and wagons.
In 2005 we backed a secondary buyout of the business, investing in the already strong management team and focusing on accelerated growth and new market opportunities.
During our investment Freightliner expanded its activities to include the haulage of bulk freight as well as becoming the largest haulier of maritime containers in the UK. In addition, the company expanded into Europe, establishing an operational subsidiary in Poland; Freightliner PL. Employee numbers grew from 1095 to 1828 during this period.
Working in conjunction with 3i, Freightliner’s highly-professional management team delivered exceptional performance, cementing its position as a growing organisation with a reputation for reliability and innovation in a demanding market. As a result, in June 2008, we successfully sold our stake to a trade buyer for an undisclosed sum.
The change of ownership ensures that Freightliner will continue to invest in and develop its Intermodal and Heavy Haul businesses and enhance its international activities.
