Regional Rail continues its expansion in the Midwest with the acquisition of the Minnesota Commercial Railway

3 June 2025

3i-backed Regional Rail, a leading owner and operator of short-line freight railroads across North America, has acquired the Minnesota Commercial Railway ("MNNR" or the "Company"). MNNR is an 86-mile railroad serving the Twin Cities area in Minnesota, with direct connection to four Class I rail networks, in addition to the Twin Cities & Western Railroad. The railroad provides freight-hauling, storage, and transload services to a diverse set of customers across a variety of end-markets, including metals, fuel & oil, chemicals & plastics, food & agriculture, and lumber. The Company also owns and operates Commercial Transload of Minnesota ("CTM"), which provides warehousing, transloading, and trucking services to local manufacturers in the region. The acquisition further expands Regional Rail's North American network, which now includes 17 railroads across 9 U.S. states and 2 Canadian provinces.

Al Sauer, President and CEO, Regional Rail, commented:
"We are honored that Becky Gohmann has entrusted Regional Rail to continue the legacy established by the late John Gohmann at the Minnesota Commercial, and we are excited to partner with the team at the MNNR and CTM to expand these operations and strengthen the business for the future. We look forward to building on the Company's track record of high-quality service and providing the team with the expanded resources of our broader platform to drive additional growth."

Rob Collins, Managing Partner and Head of North American Infrastructure, 3i, commented:
"Minnesota Commercial is a great fit for Regional Rail's strategy of partnering with strong local operators, while preserving the legacy and history of its founder. We look forward to providing continued support to Regional Rail for all future opportunities."

Rebecca Gohmann, Owner of the Minnesota Commercial Railway:
"I am very proud of John's leadership and dedication to the Minnesota Commercial Railway, as well as the dedication and hard work of our employees. I believe Regional Rail is a great fit to continue the legacy my husband started in 1987 of supporting our employees, our customers, and new growth opportunities."

Since partnering in July 2019, 3i and Regional Rail have grown from three railroads in the Northeast to seventeen freight-railroad operations located across North America. The company provides freight transportation, car-storage, and transloading services across the United States and western Canada. In addition to freight services, Regional Rail provides railroad-crossing signal design, construction, inspection, and maintenance services to a diverse base of short-line and industrial customers in 21 U.S. states via the company's Diamondback Signal subsidiary.

For further information, please contact:
3i Group plc
Silvia Santoro
Investor enquiries

Tel: +44 20 7975 3258
Email: [email protected]

Kathryn van der Kroft
Media enquiries
Tel: +44 20 7975 3021
Email: [email protected]

About 3i Group
3i is a leading international investment manager focused on mid-market infrastructure and private equity, with core investment markets in North America and Europe. For further information, please visit: www.3i.com.

About Regional Rail LLC
Regional Rail LLC is a freight transportation holding company headquartered in Kennett Square, Pennsylvania. The company provides freight-rail transportation, car-storage, and transloading services across the U.S. and western Canada, in addition to railroad-crossing signal design, construction, inspection, and maintenance services via the company's Diamondback Signal subsidiary. For further information, please visit: www.regional-rail.com.