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Rail News: Short Lines & Regionals
Genesee & Wyoming completes Freightliner Group acquisition
Genesee & Wyoming Inc. announced Wednesday that it has completed its acquisition of 94 percent of U.K. freight operator Freightliner Group Ltd. for $733 million.
The deal also has G&W assuming $29 million of net debt and capitalized leases. Freightliner's management team will retain a 6 percent economic interest in Freightliner, with G&W to have 100 percent by mid-2020, G&W officials said in a press release.
Additionally, G&W entered into a new five-year senior secured credit facility that includes a $2.18 billion loan and $625 million revolving credit facility.
Based in London, Freightliner is an international freight-rail service provider operating in the United Kingdom, Poland, Germany, Netherlands and Australia. The company's principal business is located in the U.K., where it's the second-largest freight-rail operator, providing intermodal and heavy haul services in England, Scotland and Wales.
G&W also announced traffic in first-quarter 2015 has been weaker than expectations because of severe winter weather in four of its North American regions, as well as in certain commodity groups such as steam coal and metals. Based on first-quarter results to date, the company now expects total revenue of $375 million in the quarter, or $25 million less than its guidance provided Feb. 10.
G&W subsidiaries provide rail service at more than 40 major ports in North America, Australia and Europe and perform contract coal loading and railcar switching for industrial customers.
Contact Progressive Railroading editorial staff.