Brookfield Infrastructure and Singapore’s GIC has acquired Genesee & Wyoming, a U.S. rail freight operator, under a USD 8.4 billion transaction, including debt.
The companies will pay Genesee & Wyoming Inc. stockholders USD 112 in cash for each common share, representing a premium of 39.5% to G&W’s unaffected per share price on March 8, 2019, the day prior to initial media speculation of a potential transaction.
G&W owns a portfolio of 120 short line railways, predominantly in North America, with operations in Europe and Australia. Through its subsidiaries worldwide, the business provides transport infrastructure services over more than 26,000 km of track, providing access to more than 3,000 customers. G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.
The transaction is expected to close by year end or early 2020 and is subject to customary closing conditions and certain competition and antitrust approvals.
In 2018, G&W’s operating revenues increased by 6.4% from USD 2.21 billion in 2017 to USD 2.35 billion and its operating income increased by 8% from USD 392 million in 2017 to USD 423.5 million in 2018.