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G&W agrees to buy rail operations for $210M

Rochester Business Journal
January 3, 2014

Genesee & Wyoming Inc. has agreed to purchase the western part of Canadian Pacific Railway Ltd.’s Dakota, Minnesota & Eastern Railroad for $210 million.

The acquisition is expected to add some $65 million in revenue for G&W annually, the companies said. The deal is scheduled to close by midyear.

The western line includes roughly 660 miles of rail operations that carry 52,000 carloads of grain, ethanol, fertilizer and other products annually. G&W expects to hire some 180 employees to staff the new company, Rapid City, Pierre & Eastern Railroad. The new staffers will come primarily from those currently working on the rail line.

“We are excited to be working with CP to expand G&W’s rail operations into South Dakota, as well as into Wyoming, Minnesota and Nebraska,” G&W CEO John Hellmann said in a statement. “Given G&W’s commitment to safety, service and long-term infrastructure investment, we believe this transaction will significantly benefit our customers, the employees we plan to hire, the communities that we serve and our connecting Class I rail partners.”

Connecticut-based G&W, which has its administrative base in Rochester, owns and operates short-line and regional freight railroads in the United States, Canada, the Netherlands and Australia.

G&W stock (NYSE: GWR) was up $1.28 a share to $96.71 in midday trading.

(c) 2014 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.


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