FTAI Infrastructure (FIP) has agreed to purchase The Wheeling Corporation, owner of the Wheeling & Lake Erie Railway Company (W&LE), from an entity controlled by Larry Parsons for cash consideration of USD 1.05 billion.
The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions.
The Wheeling & Lake Erie Railway is a Class II regional freight rail operator serving more than 250 customers along over 1,000 miles of track (1,069 km) in the states of Ohio, Pennsylvania, West Virginia, and Maryland. The W&LE connects to Transtar’s Union Railroad Company, outside of Pittsburgh, Pennsylvania.
W&LE currently has over 425 employees, serves over 135 customers and moves over 140,000 carloads a year. W&LE interchanges with three Class I carriers, and 16 regional and shortline carriers.
Simultaneously with the closing of the acquisition, FIP plans to refinance its existing 10.50% senior notes and Series A preferred stock. The company has received commitments for USD 2.25 billion of total capital including USD 1.25 billion of new debt to be issued by the company and USD 1 billion of preferred stock to be purchased by Ares Management funds and issued by a newly formed holding company that will own the combined Transtar and W&LE business.
“Growing our freight rail platform has been a key focus for FIP, and we are thrilled to have this opportunity to combine with the W&LE. We believe W&LE is an excellent candidate for a combination with Transtar, adding scale, diversification and network reach,” Ken Nicholson, the CEO of FIP, said.
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