Brookfield Infrastructure and Singapore’s foreign reserves investor GIC completed the acquisition of the U.S. rail freight company Genesee & Wyoming under a USD 8.4 billion transaction, including debt.
Under the terms of the sale, each issued and outstanding share of G&W common stock converted into the right to receive USD 112 in cash.
“For our customers, employees, and Class I partners, the long-term investment horizon of Brookfield and GIC is perfectly aligned with the long lives of G&W railway assets. We look forward to building on G&W’s track record of safety, service excellence and commercial growth as we become an important component of a portfolio of global infrastructure assets,” said Jack Hellmann, Chief Executive Officer of G&W.
In July 2019, it was announced that Brookfield Infrastructure and GIC will acquire Genesee & Wyoming, with a price that represented a premium of 39.5% to G&W’s unaffected per share price. Under the transaction, Brookfield Infrastructure’s investment will be approximately USD 500 million of equity. The remainder of the business will be owned by Brookfield Infrastructure’s institutional partners and GIC. Brookfield Infrastructure’s investment will be funded from existing liquidity which totaled approximately USD 1.9 billion (at June 30, 2019).
G&W owns or leases 119 freight railroads organized in locally managed operating regions with 8,000 employees serving 3,000 customers. The operator serves 42 U.S. states and four Canadian provinces and include 113 short line and regional freight railways with more than 20,921 track-km.
In Australia, G&W serves New South Wales, the Northern Territory and South Australia and operates the 2,253-km Tarcoola-to-Darwin rail line. The Australia region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.
G&W’s UK/Europe region includes the U.K.’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.
In addition, G&W subsidiaries and joint ventures provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico.