Cando Acquires Savage Rail, Forging a New North American Rail Giant

WINNIPEG, MB & SALT LAKE CITY, UT – February 23, 2026 – Cando Rail & Terminals today announced a definitive agreement to acquire Savage Rail, a move that fundamentally reshapes the landscape of North American industrial logistics. The transaction, reported to be valued at over $1 billion, will combine two of the sector's most significant players to create what the companies are calling the continent's undisputed market leader in specialized first and last mile rail services and terminal infrastructure.

This strategic combination unites Manitoba-based Cando, a Canadian leader in rail services, with Savage Rail, a major U.S. provider with a strong presence along the Midwest, Gulf Coast, and Southeast corridors. The deal not only accelerates Cando’s ambitious U.S. expansion plans but also provides parent company Savage Enterprises LLC with a significant infusion of capital to strategically reinvest in its core food and fuel businesses. The merger is poised to create a single, integrated network designed to meet the increasingly complex, cross-continental demands of modern supply chains.

Creating a Continental Powerhouse

The scale of the combined entity is formidable. Upon closing, the new Cando will operate a coast-to-coast North American network featuring 36 railcar storage, staging, and transload terminals; three short-line railways; and 80 first and last mile service operations. Crucially, company leadership emphasizes that the two networks are highly complementary, with no geographic overlap. This structure allows for a true expansion of service offerings rather than a simple consolidation of competing assets, a key point that will be central to securing regulatory approval.

With a combined workforce of over 2,000 employees and direct access to all six Class I railroads, the merged company aims to provide a seamless and more efficient connection point for industrial shippers. “The industrial rail environment is fundamentally different than a decade ago – customer supply chains are increasingly continental, and they choose partners that can support their evolving needs with greater reach and efficiency,” said Brian Cornick, President & CEO of Cando Rail & Terminals. “Bringing Cando and Savage Rail together will create the leading integrated rail terminal and infrastructure company in North America to meet these needs and beyond.”

While the “market leader” claim is bold, the operational footprint supports it. The first and last mile segment—the critical link between major rail lines and industrial facilities—is highly specialized. While Class I railroads and other short-line operators like Genesee & Wyoming are major industry players, the new Cando entity will be unique in its singular focus on providing these third-party services at such a vast, integrated scale across both Canada and the U.S.

A Strategic Pivot for Savage

For Savage Enterprises, the sale represents a calculated strategic pivot rather than an exit. The divestment of its rail division allows the Utah-based private company to refine its portfolio and channel significant capital into its rapidly growing food and fuel-focused businesses. This move aligns with Savage's recent investments and acquisitions aimed at strengthening its position in global agriculture and energy supply chains.

“This is a great opportunity for Savage Rail and Savage as a whole,” said Savage’s President and CEO Jeff Roberts. He noted the deal creates new opportunities for the rail services team by joining a larger, rail-focused company while providing Savage with capital to expand its other ventures. “We’re excited about the additional offerings Cando will provide for our rail services customers as a pure-play rail company as well as the investment opportunities that this sale will provide for our other businesses.”

Savage's reinvestment strategy is already taking shape. The company has heavily invested in its agribusiness subsidiary, Bartlett, which recently completed a state-of-the-art soybean processing plant in Kansas designed to produce food, animal feed, and feedstocks for renewable fuels. Savage has also expanded its logistics footprint through acquisitions like The Dupuy Group, which specializes in food-grade products, and Ceres Global Ag Corp., demonstrating a clear focus on becoming a powerhouse in moving and managing essential agricultural and energy commodities.

Reshaping the Shipper and Railroad Experience

The primary beneficiaries of this merger are expected to be the industrial shippers who rely on rail to move raw materials and finished products. The combined Cando-Savage network promises a single-source solution for complex logistics, potentially reducing transit times, improving reliability, and simplifying supply chain management across the continent. Direct connectivity to all six Class I railroads is a major selling point, enabling the company to work in concert with the major carriers to improve product flow from origin to destination.

“Combining with Cando represents a logical next step in our growth journey and the continued evolution of our rail assets,” said Mike Miller, Senior Vice President and Rail Services Leader at Savage Rail. “Cando shares our commitment to deliver safe, reliable rail operations at critical points in our customers’ supply chains and provides meaningful opportunities for our people.”

For the Class I railroads, the emergence of a larger, more integrated partner for first and last mile services could be a significant advantage. These segments are often the most complex and resource-intensive parts of the rail journey. A stronger partner with a continental reach can help the major railroads expand their own service offerings to customers without direct capital investment in localized infrastructure, creating a more efficient ecosystem for all parties.

Cando's M&A Momentum and the Path Ahead

This acquisition is the capstone on a period of aggressive growth for Cando. It marks the company's fourth major acquisition in just over two years, a period that has seen over $1 billion in capital deployed to expand its footprint, including the recent purchase of the Channelview Terminal on the Houston Ship Channel. This M&A activity reflects a broader consolidation trend within the logistics industry, where scale, technological integration, and comprehensive network coverage are becoming critical competitive differentiators.

The transaction is expected to close in the second quarter of 2026, subject to customary closing conditions and regulatory approvals from bodies such as the U.S. Surface Transportation Board and Canada’s Competition Bureau. The companies' argument that their networks do not overlap will be a central element of their case for a smooth approval process. Following the merger, Cando will maintain its global headquarters in Manitoba while establishing a new U.S. headquarters in Salt Lake City, Utah, inheriting a significant operational base from Savage Rail.