Ridgewood Infrastructure has acquired a controlling interest in Sierra Railroad Company, a California-based shortline rail platform providing freight rail, switching, storage, and transloading services to industrial, agricultural, and energy supply chains. The investment firm announced the deal alongside Sierra’s acquisition of Central Valley Ag Transport (CVAT), an agricultural transload facility operator serving customers along Sierra’s rail network.
Sierra’s operating subsidiaries include Sierra Northern Railway, which owns and operates the freight rail business and provides switching, storage, and transloading services across approximately 130 miles of track in California. The network is located near key dairy and agricultural regions, major West Coast ports, and industrial demand centers, providing last-mile connectivity for essential supply chains.
Sierra Northern also maintains strategic interchange connections with both Union Pacific Railroad and BNSF Railway, allowing customers flexible routing options and access to the broader national rail network.
The transaction includes Sierra’s subsidiary Railpower, Inc., which operates the only Federal Railroad Administration–approved hydrogen-powered locomotive in the United States, highlighting the company’s work in zero-emissions rail technology.
At the same time as Ridgewood’s investment, Sierra is acquiring Central Valley Ag Transport. The addition of CVAT is expected to vertically integrate agricultural transload capabilities into Sierra’s platform, strengthening services for California’s dairy and agricultural sectors by enabling more efficient movement of feed and other agricultural products.
Ridgewood Infrastructure said the investment will support growth initiatives, including increasing freight volumes, expanding transload capacity, and supporting technology and operational improvements across Sierra’s platform.
King & Spalding and Truist Securities advised Ridgewood Infrastructure on the transaction, while Northborne Partners advised Sierra. Debt financing for the deal was provided by Brookfield Infrastructure Credit.
KEY QUOTES:
“Sierra is a high-quality shortline rail platform with strong fundamentals, a diversified customer base, and a strategic footprint in some of California’s most important industrial and agricultural corridors. Our team brings deep experience owning and operating shortline and other railroad businesses across the United States, and we see meaningful opportunities to build on Sierra’s strong foundation by driving additional freight volumes for both existing customers and new customers, expanding transload capabilities, and supporting innovation across the platform.”
Ryan Stewart, Partner at Ridgewood Infrastructure
“This partnership with Ridgewood marks an important next step for Sierra. Ridgewood’s experience operating rail and infrastructure businesses, combined with their investment approach, gives us the resources and support to accelerate execution across the platform. We are focused on growing volumes, expanding transload capacity, and continuing to serve our customers with the reliability and responsiveness they expect.”
Kennan H. Beard III, Chief Executive Officer of Sierra Northern
“In selecting a partner for Sierra, it was critical to find an investor with the sector expertise, aligned strategic perspective, and financial capacity to support the company’s next phase of growth. Sierra had reached a point where meaningful near-term investment was required to pursue identified opportunities. Ridgewood stood apart as a differentiated, value-added partner with a deep understanding of the rail industry and a proven track record of building lower middle-market infrastructure businesses. Their experience and approach made them the right long-term owner for Sierra, and I am pleased to remain a significant investor alongside Ridgewood.”
Mike Hart, Founder of Sierra Railroad Corporation
