Genesee & Wyoming (G&W) recently announced the completion of its $8.4 billion sale to affiliates of Brookfield Infrastructure and GIC.
Broached in March 2019 and announced in July 2019, the deal’s terms dictate that “each issued and outstanding share of G&W common stock [be] converted into the right to receive $112 in cash. As a result of the completion of the sale, G&W’s common stock ceased trading on the NYSE … and will no longer be listed for trading on the NYSE,” the Darien, Conn.-based company noted in a press release.
G&W—which operates 120 railroads in North America, Europe, the U.K. and Australia, and employs 8,000—has a history of deals with private investors, as in 2012, when Carlyle Group LP invested upwards of $800 million so G&W could acquire RailAmerica Inc. Then in 2016, G&W bought Glencore Rail and simultaneously sold a 49% stake in that to Macquarie Group Ltd.’s Macquarie Infrastructure and Real Assets unit.
“This transaction is an excellent outcome for all G&W stakeholders,” said Hellmann. “For our customers, employees, and Class I partners, the long-term investment horizon of Brookfield and GIC is perfectly aligned with the long lives of G&W railroad assets. We look forward to building on G&W’s track record of safety, service excellence and commercial growth as we become an important component of a portfolio of global infrastructure assets.”