Ridgewood Infrastructure Acquires Sierra Railroad Company

NEW YORK, March 9, 2026 /PRNewswire/ -- Ridgewood Infrastructure, a leading investment firm focused on essential infrastructure in the United States, today announced that it has acquired a controlling interest in Sierra Railroad Company ("Sierra"), a California-based shortline rail platform providing freight rail, switching, storage, and transloading services to a diversified customer base across key essential industrial, agricultural, and energy supply chains. Simultaneously with Ridgewood's investment Sierra is acquiring Central Valley Ag Transport ("CVAT") an agricultural products transload facility owner and operator serving customers along Sierra's rail network.

Sierra's operating subsidiaries include Sierra Northern Railway ("Sierra Northern"), which owns and operates the freight rail business and provides switching, storage, and transloading services across approximately 130 miles of track in California. Sierra Northern's network is strategically located near core dairy and agricultural regions, major West Coast ports, and industrial demand centers, enabling critical last-mile connectivity across essential supply chains.

Sierra Northern benefits from strategically located Class I interchanges, including access to both Union Pacific Railroad and BNSF Railway, providing customers with enhanced network redundancy, routing flexibility, and connectivity to national rail markets.

The transaction also includes Sierra's subsidiary Railpower, Inc., which owns and operates the only Federal Railroad Administration ("FRA")–approved hydrogen-powered locomotive in the United States, reflecting Sierra's leadership in rail innovation and zero-emissions locomotive technology.

The acquisition of CVAT strengthens Sierra's platform by vertically integrating agricultural transload capabilities that are essential to California's dairy and broader agricultural industry. CVAT provides specialized transloading services along Sierra Northern's network, enabling efficient movement of feed and agricultural products while deepening customer relationships and increasing rail utilization.

"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," said Ryan Stewart, Partner at Ridgewood Infrastructure. "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."

"This partnership with Ridgewood marks an important next step for Sierra," said Kennan H. Beard III, Chief Executive Officer of Sierra Northern. "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."

"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," said Mike Hart, Founder of Sierra Railroad Corporation who has led the company since its acquisition in 1995. "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," Mr. Hart added. "Their experience and approach made them the right long-term owner for Sierra, and I am pleased to remain a significant investor alongside Ridgewood."

Ridgewood was advised by King & Spalding and Truist Securities. Sierra was advised by Northborne Partners. Debt financing for the transaction was provided by Brookfield Infrastructure Credit.

About Ridgewood Infrastructure

Ridgewood Infrastructure invests in essential infrastructure businesses across the transportation, energy, utilities, and industrial sectors. The firm focuses on assets that provide critical services, exhibit durable demand, and offer opportunities for value creation through operational improvement and strategic growth.

About Sierra Railroad Company

Sierra Railroad Company is a California-based rail platform whose subsidiaries include Sierra Northern Railway, a shortline freight rail operator providing switching, storage, and transloading services across approximately 130 miles of track; and Railpower, Inc., a hydrogen locomotive business.

About Central Valley Ag Transport

Central Valley Ag Transport is an agricultural products transload operator serving dairy farmers and agricultural customers along Sierra Northern Railroad's network.

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