Pamplona Capital Management and JP Morgan Asset Management have sold Beacon Rail Leasing to institutional investors advised by JP Morgan Asset Management.
Headquartered in Luxembourg with additional offices in London and Boston, Beacon Rail’s current portfolio includes 225 locomotives, over 1000 freight wagons, 55 passenger train units, 67 double decker coaches and 13 sets of five-car intercity carriages on lease in the UK, Germany, Denmark, France, Belgium, Norway, Sweden, Austria, and the Netherlands.
Ted Gaffney, the CEO of Beacon Rail, will continue to lead the company, supported by the existing management team.
Matt LeBlanc, chief investment officer for OECD infrastructure at JP Morgan Asset Management, says: “We are very pleased to have completed the acquisition of Beacon Rail, a core transportation platform which provides investors with access to a diversified portfolio of rolling stock assets in the UK and continental Europe. The quality of the management team, relatively young fleet of assets and deep customer relationships provide an opportunity for growth and expansion.”
Gaffney says: “The closing on the acquisition of Beacon marks the beginning of a new chapter for Beacon Rail. We remain committed and are now extremely well positioned to continue to provide quality, state of the art rolling stock to the European and UK freight and passenger markets. The support and capital commitment offered to the company by a highly experienced global infrastructure investor will provide Beacon Rail with the opportunity to continue to grow its portfolio and expand its market reach. With the support of JP Morgan Asset Management and the long-term investors it represents, I am very confident that Beacon Rail can fulfill its strategic mission of being the leading provider of high quality rolling stock to the Pan European operator base.”
Robert G Warden, partner at Pamplona, says: “We are very pleased with the significant growth and enhanced profitability that Beacon has experienced over the last three years. During this period, Beacon added several new locomotive classes, expanded its offering to include passenger trains and opened an office in Luxembourg. The company has invested in excess of EUR400 million in new equipment and platform acquisitions, and we believe that the business, under Ted’s leadership, is poised for accelerated expansion. A partnership with JP Morgan Asset Management brings global resources and a deep knowledge of infrastructure assets, which will help continue Beacon’s development as a leader in the UK and Continental European rail leasing industry.”
