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Rail News: Short Lines & Regionals
Genesee & Wyoming to acquire Pinsly's Arkansas subsidiaries
Genesee & Wyoming Inc. (GWI) has signed an agreement with Pinsly Railroad Co. to acquire certain subsidiaries in Arkansas for $40 million in cash, subject to an adjustment for final working capital and customary closing conditions.
Expected to be completed in early January, the acquisition includes the Arkansas Midland Railroad, Prescott & Northwestern Railroad, Warren & Saline River Railroad and two Arkansas transload operations managed by Pinsly’s Railroad Distribution Services subsidiary.
The operations in total include 137 miles of owned and leased track, 70 employees and 16 locomotives, and serve the Hot Springs and Little Rock, Ark., areas, as well as the southwestern and southeastern portions of the state. The railroads haul about 35,000 carloads per year and serve a diverse customer base in such industries as aluminum, forest products, aggregates, energy and carton board.
Pinsly Arkansas will be managed as part of GWI's Central Region, which includes six short lines in Arkansas, and will be led by Regional Senior Vice President Dewayne Swindall. The acquisition will be funded from GWI's revolving credit facility.
"Over the past 22 years, the Pinsly team has built an impressive cluster of short line railroads in Arkansas, with a clear focus on safety and customer service," said GWI President and Chief Executive Officer Jack Hellmann in a press release. "Following the acquisition, [we] will own nine short line railroads in Arkansas, and we are excited about the opportunity to support and drive further economic growth in the state."
GWI is a highly respected leader in the short-line industry, and Pinsly's customers, employees and communities will be well positioned for continued growth and success in the coming years, said Pinsly President and CEO John Levine.
"I am very pleased and proud of the accomplishments of our talented and dedicated Arkansas team over the past 22 years," he said. "We look forward to working with GWI toward a successful closing and transition of the business in January 2015.”
GWI currently owns and operates 112 short lines and regionals in the United States, Canada, Australia, Netherlands and Belgium.
Contact Progressive Railroading editorial staff.
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