Genesee & Wyoming Inc. (GWI) (NYSE: GWR) announced today that it has
acquired the Georgia Southwestern Railroad, Inc. (Georgia Southwestern)
for cash consideration of approximately $16.5 million and the assumption
of $5.4 million in debt, subject to adjustment for final working capital.
Headquartered in Dawson, Ga., the Georgia Southwestern operates over 220
miles of track between (i) White Oak, Ala., and Smithville, Ga.; (ii)
Cuthbert, Ga., and Bainbridge, Ga. and (iii) in and around Columbus, Ga.
The Georgia Southwestern connects to GWI's Chattahoochee Industrial
Railroad in Saffold, Ga., via trackage rights.
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The Georgia Southwestern has 20 employees and 10 locomotives and carries
approximately 10,000 carloads per year, primarily serving customers in
the peanut, general agriculture, aggregate, animal feed and ethanol
storage markets. It interchanges with Norfolk Southern, CSXT and the
Heart of Georgia Railroad.
The Georgia Southwestern will be managed as part of GWI's Southern
Region under the leadership of GWI Senior Vice President Gerald T.
Gates. GWI expects the acquisition will be immediately accretive to its
earnings per share.
GWI owns and operates short line and regional freight railroads in the
United States, Canada, Australia and the Netherlands and owns a minority
interest in a railroad in Bolivia. Operations currently include 63
railroads organized in nine regions, with more than 6,700 miles of owned
and leased track and approximately 3,000 additional miles under track
access arrangements. GWI provides rail service at 16 ports in North
America and Europe and performs contract coal loading and railcar
switching for industrial customers.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding Genesee &
Wyoming's business which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion of
such risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see "Risk
Factors" in the Company's Annual Report or Form 10-K for the most
recently ended fiscal year.
Genesee & Wyoming
Michael Williams, 203-629-3722
Director of Corporate Communications