Rail support firm acquired by Austrian company in 8-figure deal
A Chesterfield business that is a UK leader in rail support services has been acquired by an Austrian company for an eight-figure sum.
Harry Needle Railroad Company, which also has a site in Worksop, has been acquired by rail contractor Swietelsky.
The deal will enable founder Harry Needle to realise his majority share in the business while continuing in his role as Managing Director, and allow Swietelsky to expand its operations in the UK.
It will also provide an exit for Harry Needle’s main funder, Frontier Development Capital (FDC), which supported the acquisition of the Worksop site five years ago and the subsequent growth of the business.
Established in 1999 by former paratrooper Harry Needle, Harry Needle Railroad Company started out from its site in Chesterfield recovering spares from redundant rolling stock and went on to acquire a fleet of locomotives for hire.
In 2019, with backing from FDC, it acquired the derelict former rail depot in Worksop and invested £8m to convert it into a complete operations centre. The 15-acre site is now one of the largest of its type in the country.
Harry Needle employs around 30 staff across the two sites and can offer storage for up to 700 railway vehicles. The company serves manufacturers and operators including Alstom, Porterbrook and South Eastern. Since acquiring the Worksop site, it has grown turnover by 600%.
Swietelsky, one of Austria’s leading construction companies, is also Europe’s largest privately-owned track maintenance contractor. It currently operates UK sites in Reading, Manchester and Glasgow through its joint venture with Babcock.
Harry Needle, Managing Director at Harry Needle Railroad Company, said: “Over the past five years our business has grown to become a UK leader in rail support services. Joining forces with Swietelsky will give us the right structure and support to take it to the next level.
“FDC’s backing has been crucial to the transformation of our Workshop facility and the significant growth of the company and we thank them for their support. We look forward to working with the Swietelsky team as the business begins the next stage of its growth journey.”
FDC provided investment from its Rail Supply Growth Fund.
Jack Glonek, Investment Director at FDC, said: “Harry Needle Railroad Company 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. It has been a privilege working with Harry and his team, supporting them with multiple investments and watching the business go from strength to strength.”
Marcus Mayers of specialist rail consultancy RASIC advised Harry Needle Railroad Company on the sale.
Part of Mercia Asset Management, FDC supports mid-market SME businesses across the country with debt funding between £1m and £7.5m.