Genesee & Wyoming to be acquired by Brookfield Infrastructure and GIC for $8.4bn
Genesee & Wyoming Inc. (G&W), together with Brookfield Infrastructure, GIC and Brookfield Infrastructure’s institutional partners (together referred to as the consortium), are announcing an agreement pursuant to which affiliates of Brookfield Infrastructure and GIC will acquire G&W in a transaction valued at approximately $8.4 billion.
The transaction will result in G&W becoming a privately held company. G&W owns a portfolio of 120 short line railroads, predominantly in North America, with operations in Europe and Australia. Through its subsidiaries worldwide, the business provides transportation infrastructure services over more than 26,000 kilometres of track, providing access to its well-diversified customer base.
“We believe this transaction is an excellent outcome for all G&W stakeholders,” said Jack Hellmann, G&W Chairman and Chief Executive Officer. “For our current stockholders, the sale price realises significant value and represents a 39.5 percent premium to our March 8th share price. And for long-term investors who have owned our shares for the past two decades, the sale price represents a return of more than 5,400 percent.”
“This is a rare opportunity to acquire a large-scale transport infrastructure business in North America,” said Sam Pollock, Chief Executive Officer of Brookfield Infrastructure. “G&W will be a significant addition to our global rail platform and will expand our presence in this sector to four continents. G&W provides critical transportation services to more than 3,000 customers, and its cash flows have proven to be highly resilient over many years. Brookfield Infrastructure is well suited to work with the company to continue to improve the business, given our significant experience owning and operating rail, ports and other large scale, transportation infrastructure businesses.”
The Transaction is expected to close by year end or early 2020.
For more information visit www.gwrr.com
15th July 2019
