Genesee & Wyoming G&W Sold and Taken Private

From Trains Magazine: http://trn.trains.com/news/news-wire/20 ... of-company" onclick="window.open(this.href);return false;

Currently G&W is in early talks with Brookfield Asset Management in regards to a partnership or a sale.

The principal reason being that the company sees the cost of acquiring shortlines is not worth the return on investment. G&W's businesses model is in large part based off of acquiring shortlines, and if management no longer sees it as worth the cost, then it makes sense to sell the company.

G&W could also enter into a partnership with Brookfield, similar to what WATCO has done with Oaktree, in order to fund acquisitions of more shortlines.

Regardless of weither or not the company will be sold, it appears the "orange plague" has stopped spreading for now.

https://www.bloomberg.com/news/articles ... stake-sale" onclick="window.open(this.href);return false;
Another article on the same

Here we go again. RailTex; RailAmerica; G&W. Let's see how many other corporate entities I can work for before I retire. When Fortress acquired RA, it changed nothing here in the trenches. Fortress basically just chewed on us for awhile, spit us out, and kept the FEC. Let's see what these other wingnuts are made of.

Update on the sale:

https://www.bloomberg.com/news/articles ... ng-bidders" onclick="window.open(this.href);return false;

Letest update

Brookfield Asset Management is the frontrunner to acquire railroad operator Genesee & Wyoming

Fair use quote

“(Bloomberg) -- An affiliate of Brookfield Asset Management Inc. is the frontrunner to acquire railroad operator Genesee & Wyoming Inc., according to people with knowledge with the matter. ...

... Bloomberg reported in May that the Toronto-based investment firm was vying with rivals including Blackstone Group LP, Stonepeak Infrastructure Partners and EQT Partners to acquire the company, ...”

Wow ... Pretty surprising development.

Done: https://www.foxbusiness.com/markets/rai ... -8-4b-deal

U.S. freight railroads Opens a New Window. operator Genesee & Wyoming Opens a New Window. on Monday agreed to be acquired by Toronto-based Brookfield Asset Management and Singaporean sovereign wealth fund GIC in a deal valued at about $8.4 billion, including debt.
...
G&W owns a portfolio of 120 short line railroads, predominantly in North America, with operations in Europe and Australia.

"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 realizes significant value and represents a 39.5 percent premium to our March 8 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 just in from Trains Magazine

Shortline holding company to be taken private by Brookfield Infrastructure

Apparently one of the compelling reasons for taking G&W private was supposed issues with valuation related to domestic vs. overseas operations.

GWI management didn't invest in growing their lines, just kept wheeling out cash they didn't have to buy new ones and hope it would drive up shareholder value. That balloon burst after the P&W acquisition where everyone knew they had stretch their pennies a little too far. My expectation is some lines will start to be sold off under new management and hopefully investment back into the outfits that drive the bottom line.

Interesting perspective. I'm curious to see what Brookfield does. They seem to have an accretive philosophy when it comes to assets.

I was wondering if P&W was a "Bridge Too Far" myself. Don't forget RailAmerica. Debt service can be a killer. I'd expect some rationalization of the network.

Does Brookfield own any other railroads?

It appears not. Looks like they specialize in real estate/hydro power operations.

CN9634 wrote: ↑Mon Jul 01, 2019 7:53 pm GWI management didn't invest in growing their lines, just kept wheeling out cash they didn't have to buy new ones and hope it would drive up shareholder value. That balloon burst after the P&W acquisition where everyone knew they had stretch their pennies a little too far. My expectation is some lines will start to be sold off under new management and hopefully investment back into the outfits that drive the bottom line.

I would love to see NECR, CSO and P&W get sold to someone and have it be renamed NYNH&H...