Regional Rail, a freight transportation holding company headquartered in Kennett Square, Penn. and backed by 3i Group, has acquired a portfolio of railroads located in the Midwest region of the U.S.

Regional Rail has acquired Agracel Rail Holdings‘ three railroads, the Effingham Railroad Co., South Point & Ohio Railroad, and Illinois Western Railroad Co. The portfolio serves industrial customers across a variety of end markets, including chemicals, aggregates and lumber. Regional Rail also began its freight rail operations the Port of Indiana-Burns Harbor with its Burns Harbor Railroad LLC subsidiary, which represented its first operation in the Midwest.

 “This is another great example of Regional Rail’s philosophy of partnering with strong local operators to help grow their business over the long term,” comments Rob Collins, managing partner and head of North American infrastructure. “We believe that these assets have incredible potential and look forward to continuing to support Regional Rail.”