Genesee & Wyoming Inc. (G&W) (NYSE:GWR) announced today that it has
completed the acquisition of Providence and Worcester Railroad Company
(P&W) for $25.00 per share, or approximately $126 million.
Immediately following the closing of the acquisition, G&W transferred
the stock of P&W to a voting trust with R. Lawrence McCaffrey appointed
as trustee. The trust will remain in effect until the U.S. Surface
Transportation Board (STB) approves G&W’s control of P&W, which is
anticipated to occur in the fourth quarter of 2016. Upon receipt of STB
approval, P&W would be managed as part of G&W’s Northeast Region, led by
Senior Vice President Dave Ebbrecht.
Headquartered in Worcester, Mass., and operating in Rhode Island,
Massachusetts, Connecticut and New York, P&W is contiguous with G&W’s
New England Central Railroad (NECR) and Connecticut Southern Railroad
(CSO). P&W serves a diverse mix of aggregates, auto, chemicals, metals
and lumber customers, handling approximately 43,000 carloads and
intermodal units annually. In addition, P&W provides rail service to
three ports (Providence, Davisville and New Haven) and to a U.S. Customs
bonded intermodal terminal in Worcester.
Morgan Stanley & Co. LLC served as G&W’s financial advisor, and Simpson
Thacher & Bartlett LLP served as G&W’s legal advisor.
About G&W
Genesee & Wyoming owns or leases 121 freight railroads worldwide that
are organized in 10 operating regions with approximately 7,200 employees
and more than 2,800 customers.
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G&W’s eight North American regions serve 41 U.S. states and four
Canadian provinces and include 113 short line and regional freight
railroads with more than 13,000 track-miles.
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G&W’s Australia Region provides rail freight services in New South
Wales, the Northern Territory and South Australia and operates the
1,400-mile Tarcoola-to-Darwin rail line.
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G&W’s U.K./Europe Region is led by Freightliner, the U.K.’s largest
rail maritime intermodal operator and second-largest rail freight
company. Operations also include heavy-haul in Poland and Germany and
cross-border intermodal services connecting Northern European seaports
with key industrial regions throughout the continent.
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.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release and conference call
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.
G&W Corporate Communications
Michael Williams, 1-203-202-8900
Web site: www.gwrr.com