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Rail News Home Short Lines & Regionals

July 2019

Rail News: Short Lines & Regionals

From the editor: G&W to be acquired for $8.4 billion


By Pat Foran, Editor

On July 1, Genesee & Wyoming Inc. (G&W) announced it had reached an agreement to be acquired by Brookfield Infrastructure Partners LP, GIC and Brookfield Infrastructure’s institutional partners. The transaction is valued at about $8.4 billion, including outstanding debt. Brookfield Infrastructure’s investment will be about $500 million of equity, funded from existing liquidity that totaled about $1.9 billion as of June 30. The remainder of the business would be owned by Brookfield Infrastructure’s institutional partners and GIC.

When the transaction closes by year end or in early 2020, G&W — the largest short-line holding company in North America — would become a privately held company. G&W owns or leases 120 short lines, predominantly in North America, with operations in Europe and Australia. The company’s six North American regions include 114 regionals and short lines operating in 41 states and four Canadian provinces.

The transaction is an “excellent outcome” for all G&W stakeholders, including current stockholders and long-term investors who will gain large premiums or returns, said G&W Chairman and CEO Jack Hellmann in a press release.

The deal poses “a rare opportunity” to acquire a large-scale transportation infrastructure business in North America, said Brookfield Infrastructure CEO Sam Pollock. His firm is well suited to work with G&W to continue to improve its business given Toronto-based Brookfield Infrastructure’s significant experience owning and operating rail entities, ports and other large-scale, transportation infrastructure businesses, he added.

The deal requires approval by G&W stockholders holding 66.66 percent of outstanding common stock, regulatory blessings from the Committee on Foreign Investment in the United States and Surface Transportation Board, and certain competition and antitrust approvals.

LRW seeks ‘Outstanding’ award nominations

There’s still time to nominate someone for the League of Railway Women’s (LRW) 2019 Outstanding Woman of the Year Award.

LRW is seeking nominations for an outstanding woman in rail who demonstrates vision and creativity; takes initiative; provides guidance in a leadership role; overcomes challenges with innovative solutions; and brings excellence to her organization and community. Women working in the North American rail industry are eligible to receive the award, which is co-sponsored by Progressive Railroading. Nomination criteria and the online nomination form are available on the LRW website.

Nominations are open until Aug. 16.

The league’s newly formed Railway Woman of the Year Advisory Committee has streamlined the nomination process, said LRW Awards Chair Lisa Tackach. LRW will formally announce this year’s recipient Sept. 23 at the general session of Railway Interchange 2019 at the Minneapolis Convention Center in Minneapolis.


Browse articles on Genesee & Wyoming Brookfield Infrastructure Partners GIC Jack Hellmann League of Railway Women

Contact Progressive Railroading editorial staff.