Ancala has agreed to sell Hector Rail, the largest private rail freight operator in Scandinavia, to funds managed by InfraRed Capital Partners for SEK 2.61 billion (€230m). Ancala expects the transaction to close by late 2026.

Both parties are London-based investment funds. Hector Rail operates primarily in Sweden, with additional operations in Norway and Denmark, and reaches Germany through a subsidiary.

Ancala bought the operator in 2020. Since then, annual revenue has grown 40% and EBITDA has tripled, according to the seller. The company did not disclose absolute figures for either metric, so the claimed growth rates cannot be checked against published accounts. The valuation itself implies a significant appreciation on Ancala's 2020 purchase, although the original acquisition price was not stated.

Hector Rail serves a range of sectors, from timber and bulk transport to intermodal services. Its core operational asset is a rolling stock fleet of more than 100 locomotives. The company owns the majority of this fleet, which is largely electric and operates across Scandinavia and Germany, Ancala noted.

Fleet ownership is a distinguishing feature in the Scandinavian market. Hector Rail is also one of the few private operators with specialised locomotives capable of running through Sweden, Denmark and Germany without changing engines. That capability matters operationally: cross-border movements on the Scandinavian–German corridor normally require locomotive changes or multi-system traction, which add time and cost to freight paths. Operators with through-running locomotives can offer customers faster transit times and simpler single-haul contracts on these routes.

The deal signals continued investor appetite for European rail freight assets. Infrastructure funds have shown sustained interest in the sector as shippers shift cargo from road to rail under decarbonisation pressure, and Hector Rail's electric-heavy fleet positions it to benefit from that demand shift across its core markets.

For InfraRed, the acquisition adds an established operator with a large owned fleet and a diversified customer base spanning timber, bulk and intermodal traffic. The fund manager's plans for the business beyond the stated growth record have not been detailed.

Hector Rail CEO Carsten Hinne framed the transaction as recognition of the company's development under Ancala's ownership. The deal "reflects the collective effort across the business to strengthen how we serve our customers and grow our position as Scandinavia's leading private rail freight operator", Hinne said.

Ancala described the sale as a "major milestone" for the company it has held for roughly five years. The private equity owner took the operator through a period of expansion in which it grew both revenue and earnings while extending its operational reach.

Completion remains subject to the closing timeline running to late 2026, with no regulatory conditions disclosed in the announcement. Until then, Hector Rail continues operating under its current structure across its four markets.

Once the transfer to InfraRed funds is finalised, the new owner's investment priorities — whether fleet expansion, further geographic growth or bolt-on acquisitions — will determine whether Hector Rail's trajectory under Ancala continues at the same pace.