CEDAR RAPIDS, Iowa — The Andersons Inc. recently made a significant minority investment in the Iowa Northern Railway Co. and its subsidiaries.
IANR operates a 163-mile Class III (short-line) railroad that runs diagonally through Iowa from northwest to southeast from Manly to Cedar Rapids and a branch line from Waterloo to Oelwein. With a fleet of 21 locomotives and 500 railcars, IANR primarily serves agribusiness customers. It is also involved in the development of logistics terminals designed to aid the transloading of various products including ethanol and wind turbine components.
“Investing in a short-line railroad has been a strategic priority for the Rail Group for some time and we are delighted with the fit between The Andersons and Iowa Northern,” said Rasesh Shah, President of The Andersons Rail Group. “Our two companies have similar cultures and a genuine commitment to serve customers. Additionally, Iowa Northern’s primary customers are in industries we know well such as grain, fertilizer and ethanol.”
Iowa Northern Railway President Dan Sabin said, “We look forward to bringing even more opportunity and service strength to our customers and communities along our line through this new relationship.”
The investment is expected to be accretive to earnings this year.
“The Andersons’ success is rooted in lasting relationships. We don’t invest in other companies lightly, but we believe that Iowa Northern represents an opportunity to participate in a company that is rooted in familiar industries, with a similar commitment to sustained profitable growth based on superior customer service and business integrity,” Chairman and CEO Mike Anderson said. “This opportunity is a continuation of The Andersons’ strategy of investment in logical business, operational and geographic adjacencies.”