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Rail News: Short Lines & Regionals
BRX Transportation to acquire Pioneer Railcorp
Pioneer Railcorp today announced it has entered into a merger agreement under which BRX Transportation Holdings LLC will acquire the railroad holding company for $18.81 per share in cash.
Pioneer Railcorp is the parent company of 17 short lines, an equipment leasing company, two service companies and a contract services switching company.
Under the agreement terms, BRX will acquire all of the outstanding shares of Pioneer's Class A common stock. Shareholders other than Pioneer's subsidiary, Heartland Rail Investments LLC, will receive $18.81 per share in cash and the Heartland shares will be canceled without consideration, according to a Pioneer press release.
The merger is subject to closing conditions, including approval by Pioneer's shareholders, Surface Transportation Board approval and certain operating performance by Pioneer.
The transaction is expected to close in third-quarter 2019.
“We look forward to this next chapter in Pioneer's journey and anticipate it will have a bright future under new ownership," said Pioneer President and Chief Executive Officer Mike Carr.
BRX was formed by infrastructure and management investment firm Brookhaven Rail Partners and Related Infrastructure. Related Infrastructure invests in companies that develop, operate and service transportation infrastructure throughout the United States.
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