Rail operator Genesee & Wyoming plans to buy RailAmerica for about $1.39 billion - InfoNews

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Rail operator Genesee & Wyoming plans to buy RailAmerica for about $1.39 billion

The Genesee & Wyoming logo. THE CANADIAN PRESS/AP, PRNewsFoto
July 23, 2012 - 7:20 AM

GREENWICH, Conn. - Genesee & Wyoming says it will buy fellow regional railroad operator RailAmerica for about US$1.39 billion in cash.

The Greenwich, Conn., company will pay $27.50 for each share of RailAmerica Inc., which is based in Jacksonville, Fla.

The price represents a premium of nearly 11 per cent over RailAmerica's closing price of $24.81 on Friday.

Genesee & Wyoming Inc. says the deal will combine the two largest short line and regional rail operators in North America and strengthen its ability to serve its industrial customers.

The U.S. Surface Transportation Board still must approve the deal. The companies say that could happen by the fourth quarter.

RailAmerica announced in May that it was considering strategic alternatives, including a possible sale.

News from © The Associated Press, 2012
The Associated Press

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