BRX Transportation Holdings, an entity formed by Brookhaven Rail Partners and Related Infrastructure, entered definitive agreement to acquire Pioneer Railcorp, which owns short line rail operators, an equipment leasing company, two service companies and a contract services switching company. Pioneer Lines include 23 rail operations in 13 states.
Under the agreement, USD 18.81 is the price per share in cash. Under the terms of the agreement, BRX will acquire through merger all of the outstanding shares of Pioneer’s Class A common stock. Shareholders other than Pioneer’s subsidiary, Heartland Rail Investments LLC, will receive USD 18.81 per share in cash and the Heartland shares will be canceled without consideration.
“Pioneer fits perfectly with Brookhaven’s philosophy of identifying opportunities where our hands-on management expertise, proprietary value creation strategies, and deep industry relationships provide us with a competitive advantage and the ability to create value,” Alex Yeros, Principal of Brookhaven, said.
The transaction is expected to close in the third quarter of 2019.