Canada's Cando Rail & Terminals to buy Savage Rail

Feb 23 (Reuters) - Canadian railroad contractor Cando Rail & Terminals will buy U.S. peer Savage Rail as it expands its footprint across the U.S., Cando announced on Monday.

The transaction gives the Manitoba-based Cando a significant foothold in the U.S., while it continues to expand its network of rail terminals and infrastructure in the country.

Financial terms were not disclosed.

Cando Rail & Terminals provides logistics for various products including gasoline and diesel for energy companies in Canada and the United States.

"[Our] customers on the rail side are transnational in nature, whether it's throughout in Canada or down in the U.S. So we have similar clients, and a lot of them on the energy side," said Brian Cornick, President & CEO of Cando Rail & Terminals. "It really came down to two complementary companies, no overlapping footprint."

The company has invested more than $1.5 billion into expanding its rail network over its past four acquisitions, a source familiar with the matter said, adding that this acquisition accounts for a substantial part of that spending.

Savage Rail's operations span the U.S., including in the Midwest, Gulf Coast and Southeast corridors.

Cando expects to close the transaction in the second quarter of this year.

The company plans to establish a new U.S. headquarters in Salt Lake City, Utah, while keeping its global headquarters in Manitoba.