Regional Rail Acquires Minnesota Commercial Railway to Bolster Midwest Expansion
Deal News | Jun 03, 2025 | 3i Group
3i-backed Regional Rail, a prominent operator in the North American short-line freight railroad industry, has announced the acquisition of the Minnesota Commercial Railway (MNNR). This 86-mile network services the Twin Cities area, providing vital links to four Class I rail networks and offering freight-hauling, storage, and transload services across diverse sectors. This strategic acquisition enhances Regional Rail’s growth in the Midwest and exemplifies its expansion strategy in collaboration with strong local operators while preserving historical legacy. The move is supported by 3i Group, which highlights a continued commitment to backing Regional Rail in its growth endeavors. With this acquisition, Regional Rail expands its network to include 17 railroads across the US and Canada, reflecting robust growth since their partnership in 2019.
Sectors
- Transportation
- Private Equity
Geography
- United States – The country where the Minnesota Commercial Railway is located and where Regional Rail is expanding operations.
- Canada – Part of Regional Rail's operational network, indicating a broader North American expansion strategy.
Industry
- Transportation – The primary industry involved, focusing on rail transportation and logistics services.
- Private Equity – 3i Group's investment and acquisition facilitation represent significant activity in the private equity sector.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Regional Rail | Acquiring Company | Company | A leading owner and operator of short-line freight railroads in North America. |
| Minnesota Commercial Railway | Target Company | Company | An 86-mile railway network providing freight services in the Twin Cities area. |
| 3i Group | Private Equity Backer | Company | A private equity firm backing Regional Rail's expansion efforts. |
| Becky Gohmann | Owner | Person | Owner of Minnesota Commercial Railway, continuing the legacy of the late John Gohmann. |
| Al Sauer | CEO | Person | President and CEO of Regional Rail. |
| Rob Collins | PE Firm Executive | Person | Managing Partner and Head of North American Infrastructure at 3i. |