A private equity firm in Beverly Hills, Calif., has sold Regional Rail – a Kennett Square-based operator of short-line railroads and rail-related businesses in the mid-Atlantic region – to 3i Group, a private equity firm in London.

Terms of the transaction were not disclosed.

Formed in 2007, Regional Rail has more than 155 miles of track connecting into a Class 1 railroad network. The company carries 13,000 carloads annually, while serving more than 70 customers in a broad range of markets.

“We have truly enjoyed our partnership with the team at LLCP (Levine Leichtman Capital Partners), who helped support our growth initiatives,” said Al Sauer, CEO of Regional Rail. “We will truly miss working with them but are excited to enter our next phase of growth under 3i.”

Regional Rail’s system includes the 110-mile East Penn Railroad, which has a route that runs from Elsmere, Del., to Coatesville, passing through Chadds Ford.

“The Regional Rail investment has been very successful for both LLCP and the company’s management team,” said Lauren Leichtman, founding partner of LLCP. “We are proud to have enhanced the value of Regional Rail through multiple avenues, including winning new customers, acquiring additional track miles, and optimizing service levels and operations. We wish the management team continued success.”

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