Austrian rail contractor Swietelsky has acquired Harry Needle Railroad Company (HNRC), the UK’s foremost independent provider of locomotive hire, storage, and maintenance services. The acquisition enables HNRC founder Harry Needle to realize his majority share in the business while continuing in his role as Managing Director. It also marks a significant step for Swietelsky, allowing the company to broaden its UK operations. Additionally, the deal provides an exit for Frontier Development Capital (FDC), which has been a key supporter of HNRC since its acquisition of the Worksop site in 2019.
Harry Needle Railroad Company was established in 1999 in Chesterfield by Harry Needle, a former paratrooper. Initially focused on recovering spares from decommissioned rolling stock, the company expanded its services to include locomotive hire.
In 2019, with financial backing from FDC, HNRC acquired the derelict former rail depot in Worksop and invested GBP 8 million to transform the 15-acre site into a state-of-the-art operations center. Today, it is one of the largest facilities of its kind in the UK.
HNRC employs around 30 staff across its two locations and provides storage for up to 700 railway vehicles. The company serves prominent clients, including Alstom, Porterbrook, and Southeastern. Since acquiring the Worksop facility, HNRC has achieved a 600% increase in turnover.
Strategic partnership with Swietelsky
Swietelsky operates UK sites in Reading, Manchester, and Glasgow through its joint venture with Babcock. The acquisition of HNRC aligns with Swietelsky’s strategy to expand its footprint in the UK rail sector.
Harry Needle, Managing Director of HNRC, expressed optimism about the new partnership, stating: “Over the past five years, our business has grown to become a UK leader in rail support services. Joining forces with Swietelsky provides the structure and support needed to elevate the company further. FDC’s backing has been instrumental in transforming our Worksop facility and driving our growth. We are excited to collaborate with Swietelsky as we embark on the next phase of our journey.”
FDC’s investment in HNRC was facilitated through its Rail Supply Growth Fund. Jack Glonek, Investment Director at FDC, highlighted the company’s transformation, saying: “Harry Needle Railroad Company was already a strong player, but the acquisition of the Worksop site marked a new chapter that solidified its position as a leader in the industry. Supporting Harry and his team through this journey has been a privilege.”
The transaction was supported by rail consultancy RASIC, represented by Marcus Mayers.
Frontier Development Capital, part of Mercia Asset Management, specializes in providing debt funding between GBP 1 million and GBP 7.5 million to mid-market SMEs across the UK.
Share on:
