Austrian railway construction and maintenance giant Swietelsky has acquired UK-based locomotive hire and maintenance firm Harry Needle Railroad Co (HNRC) in a deal worth an undisclosed “eight-figure sum.”
The acquisition allows HNRC founder Harry Needle to retain his role as Managing Director while enabling the exit of Frontier Development Capital (FDC), the company’s primary backer.
Expanding Swietelsky’s UK Presence
The purchase significantly enhances Swietelsky’s presence in the UK rail sector, adding to its existing joint venture sites in Reading, Manchester, and Glasgow.
HNRC, established in 1999, began as a spares recovery business and grew to operate a fleet of locomotives for hire. In 2019, with financial backing from FDC, it acquired a 6-hectare former DB Cargo depot in Worksop, investing £8 million to transform the site into a hub for locomotive repair, refurbishment, and maintenance.
HNRC’s Growth and Achievements
- Major Investment: The Worksop site can handle up to 20 vehicles per week and, alongside the company’s original Chesterfield site, can store up to 700 vehicles.
- Turnover Growth: Since acquiring the Worksop depot, HNRC has increased its turnover by 600%.
- Client Portfolio: The company provides locomotive hire and storage services to major clients, including Alstom, Porterbrook, and Southeastern.
- Workforce: HNRC employs around 30 staff across its two sites.
Jack Glonek, Investment Director at FDC, highlighted the transformative impact of the Worksop site, describing it as a turning point for HNRC:
“HNRC was already successful, but with the acquisition of the Worksop site, it began a new era that saw it become a leader in its field.”
Advisory and Future Plans
Rail consultancy RASIC advised HNRC during the sale. Swietelsky’s acquisition marks another step in the company’s expansion into the UK market, leveraging HNRC’s established operations and expertise to strengthen its portfolio of rail services.
The deal underscores the growing importance of maintenance, storage, and hire services in the UK rail industry as operators look for more efficient and cost-effective solutions.
