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Rail News: Rail Industry Trends

RailAmerica completes ParkSierra acquisition

RailAmerica Inc. has completed its $48 million ParkSierra Corp. acquisition, pushing the Boca Raton, Fla.-based company’s short-line portfolio to the half-century mark.

The purchase price consisted of $23 million in cash and $25 million in RailAmerica common stock. RailAmerica completed the deal’s cash component using a portion of the proceeds from a recent common stock private placement, as well as financing provided by its senior bank group.

Founded in 1990 by David Parkinson, Napa, Calif.-based ParkSierra comprises Arizona & California Railroad, California Northern Railroad and Puget Sound & Pacific Railroad. The three roads operate 751 track miles in four western states.

The acquisition boosts RailAmerica’s presence in the U.S. Pacific region, where the short-line holding company projects "substantial market growth," Chairman, President and Chief Executive Officer Gary Marino said in a prepared statement.

RailAmerica now owns 50 short-line and regional railroads operating 13,200 route miles in the United States, Canada, Australia and Chile. In North America, its railroads operate in 29 states and five Canadian provinces. Internationally, the company operates 4,300 route miles under track access arrangements in Australia and Argentina.

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More News from 1/9/2002