The Andersons invests in Iowa Northern Railway
May 25, 2010
by Eric Schroeder
MAUMEE, OHIO — The Andersons, Inc. has made a minority investment in the Iowa Northern Railway Co. (I.A.N.R.), which operates a 163-mile 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. The company has a fleet of 21 locomotives and 500 railcars, and it primarily serves agribusiness customers. In addition, I.A.N.R. develops logistics terminals designed to aid the transloading of various products including ethanol and wind turbine components.
Financial terms were not disclosed.
“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.”
Mike Anderson, chairman and chief executive officer, said the investment is an opportunity to expand on The Andersons’ strategy of investment in logical business, operational and geographic adjacencies.