Canada's Cando Rail & Terminals to buy US rail assets of Savage Enterprises

By Nicole Jao

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

Financial terms were not disclosed.

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.

The acquisition is a more than $1 billion transaction, a source familiar with the deal said.

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

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

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