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Pamplona Capital Management buys Beacon Rail for $450m

06 May 2014

EUROPE: Pamplona Capital Management announced a definitive agreement to acquire Beacon Rail Leasing from the BTMU Capital Corp subsidiary of Mitsubishi UFJ Financial Group on May 6.

The deal is worth US$450m including commitments for firm future deliveries of locomotives. With its headquarters in London and offices in Boston and Rotterdam, Beacon Rail has a portfolio of 77 locomotives, 632 wagons and 20 passenger trainsets on lease in the UK, France, Belgium, Norway, Sweden and Germany. Customers include RheinCargo, Europorte, VFLI and CargoNet.

Pamplona manages more than US$6·0bn of assets for clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds.

‘Pamplona’s support and capital commitment will provide Beacon Rail with the opportunity to grow its portfolio at a time when the market for purchasing and leasing locomotives and freight wagons is strong’, said Ted Gaffney, President of Beacon Rail, who will continue to lead the company supported by the existing management team. ‘With Pamplona’s support, I am very confident that Beacon Rail can fulfil its strategic mission of being a leading provider of high quality rolling stock to the pan-European operator base.’

Beacon was acquired through Pamplona’s Private Equity Fund III. Debt financing for the transaction was provided by ING Bank, which was advised by Norton Rose Fulbright. Pamplona’s financial advisers were Evercore Partners and ING Bank, while Berwin Leighton Paisner, Clifford Chance and Kirkland & Ellis provided Pamplona with legal advice.

  • On May 2 leasing company Porterbrook announced that its shareholders ‘are exploring options for their investment in the company and its associated companies, which include a possible sale of their interests.’