Cando Rail & Terminals and Savage Rail have announced a definitive agreement that will combine their operations, establishing North America's premier provider of first and last mile rail operating services and terminal infrastructure. The strategic acquisition, revealed on February 23, 2026, brings together complementary geographic footprints, operational expertise, and financial resources to create a market leader positioned for sustained growth across the continent.
Creating a Coast-to-Coast Rail Powerhouse
The transaction will see Cando acquire Savage Rail, resulting in a combined entity that operates a comprehensive coast-to-coast network across North America without geographic overlap. The newly formed company will manage an extensive portfolio including 36 railcar storage, staging, and transload terminals; three short-line railways; and 80 first and last mile rail service operations. Additionally, the combined company will maintain access to all six Class I railroads, significantly enhancing customer service capabilities and operational reach.
Strategic Benefits and Market Position
Brian Cornick, President & CEO of Cando Rail & Terminals, emphasized the strategic importance of the merger in today's evolving industrial rail environment. "Customer supply chains are increasingly continental, and they choose partners that can support their evolving needs with greater reach and efficiency," Cornick stated. "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."
The combination accelerates Cando's expansion plans in the United States while strengthening its existing Canadian network. Savage Rail brings substantial U.S. operations with assets strategically positioned along key market corridors including the Midwest, Gulf Coast, and Southeast regions.
Complementary Strengths and Future Growth
The merger represents a mutually beneficial arrangement that leverages the strengths of both organizations. Cando gains enhanced geographic reach and operational capabilities, while Savage Enterprises obtains capital from the sale to invest in expanding its core food and fuel-focused businesses.
Jeff Roberts, President and CEO of Savage, highlighted the advantages for both companies: "This is a great opportunity for Savage Rail and Savage as a whole. 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."
Operational Excellence and Safety Commitment
Both companies have emphasized their shared commitment to maintaining the highest standards of safety, reliability, and operational excellence throughout the integration process. Mike Miller, Senior Vice President and Rail Services Leader at Savage Rail, noted that the combination preserves what makes the rail business special while providing customers and teams access to broader resources.
"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," Miller explained. "This combination allows us to preserve what makes our rail business special while giving our customers and teams access to broader resources and a North American platform that's built for sustainable growth."
Industry Implications and Future Outlook
The merger creates a stronger, more resilient platform to support customers, team members, and communities while positioning the combined entity for long-term investment and growth. By combining two highly complementary teams and capabilities with Cando's strong financial profile, the new organization is well-positioned to address the evolving needs of continental supply chains.
The transaction represents a significant consolidation in the rail services sector, creating a dominant player with unprecedented geographic coverage and service capabilities across North America. Industry observers anticipate that the combined company will set new standards for efficiency and service delivery in first and last mile rail operations and terminal infrastructure management.
