Connor, Clark & Lunn (CC&L) Infrastructure has partnered with Alpenglow Rail to develop and operate a diversified portfolio of rail businesses across North America, CC&L announced on Sept. 10.
As part of the deal, CC&L Infrastructure has also acquired Alpenglow’s affiliate, VIP Rail, from Stonecourt Capital. This is CC&L’s first investment in the rail sector, a company spokesperson said in an email.
The new partnership will seek to acquire and operate a base of complementary rail across North America.
VIP Rail is a short-line rail logistics business that provides critical first- and last-mile rail transportation and storage solutions to an established, blue-chip customer base in Canada’s Sarnia, Ontario, region. The business has operations strategically located at the intersection of key pipeline and rail interchanges in close proximity to major Quebec, Ontario and United States demand centers.
“CC&L Infrastructure is pleased to expand its portfolio of traditional infrastructure assets with the acquisition of this strategic rail business,” said Matt O'Brien, president of CC&L Infrastructure. “Our partnership is expected to provide CC&L Infrastructure and its clients with exclusive access to additional investments in high-quality, long-life transportation assets at attractive investment returns.”
Rich Montgomery, CEO at Alpenglow added, “Together with the CC&L Infrastructure team, we are excited to add further value to VIP Rail and to build on this success through additional investment opportunities across the rail industry…. This focus on owning and operating assets for the long-term allows us to maintain the legacy of the railroad businesses we acquire while driving value for both our customers and employees.”
With the latest investment, CC&L Infrastructure has $4 billion in infrastructure assets under management.
