A managed affiliate of OmniTRAX, Inc has entered into a definitive agreement to acquire the 101-year-old Winchester & Western Railroad (W&W), which operates in Maryland, New Jersey, West Virginia and Virginia, from Covia Holdings Corp. The $105 million transaction is expected to close during third-quarter 2019 and is subject to customary closing conditions, including Surface Transportation Board review.
“The acquisition expands the OmniTRAX-managed short line portfolio into key new distribution locations in multiple East Coast markets, providing OmniTRAX’s customers access to 100 million people within a day’s transit,” the company said. “By becoming part of the OmniTRAX family, W&W gains the support and leadership guidance that will allow it to implement improved operational strategies with the speed and agility that a logistics company can deliver. OmniTRAX’s deployment of Precision Scheduled Short Line Railroading—a unique strategy that uses point-to-point delivery methods to lower operating costs—will strengthen W&W’s performance, service, growth and safety.
“OmniTRAX has been growing at an average annual rate of 20% plus for the past five years, and the acquisition of this strategic distribution hub is a deliberate step toward enhancing the continued growth and strength of our thriving network,” said Kevin Shuba, OmniTRAX CEO. “Our expansion into these dynamic markets with a diverse, established customer base and strong regional economic partners offers tremendous growth potential, and we have high expectations for economic impact and job production.”