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Cando Rail & Terminals, a Canadian company, will buy Savage Rail

Cando Rail & Terminals, a Canadian railroad contractor, will 'buy U.S. competitor Savage Rail to expand its footprint in the U.S.

The deal gives the?Manitoba based Cando an important foothold in the U.S. while it continues to build its rail terminals network and infrastructure across the country.

The financial terms are not disclosed.

Cando Rail and?Terminals is a logistics company that provides gasoline and diesel to energy companies in Canada as well as the United States.

" Customers?on rail are transnational, whether they're in Canada or the U.S. We have a number of'similar' clients on the energy sector, said Brian Cornick. It was a matter of two complementary companies with no overlap in their footprint.

Source familiar with the matter says that over its last four acquisitions, the company has spent more than $1.5 billion on expanding its rail network. This acquisition is a significant part of this spending, according to a source.

Savage Rail operates across the U.S. including in the Midwest, Gulf Coast, and Southeast corridors.

Cando anticipates closing the transaction by the second quarter this year.

The company intends to establish a new U.S. headquarters in Salt Lake City in Utah while maintaining its global headquarters in Manitoba. (Reporting and editing by Matthew Lewis in New York)

(source: Reuters)