Genesee & Wyoming Inc. to acquire Providence and Worcester Railroad for $126M

THE PROVIDENCE & WORCESTER RAIL CO. will be acquired by Genesee & Wyoming Inc., of Darien, Conn., for approximately $126 million. / COURTESY PROVIDENCE & WORCESTER RAIL CO.
THE PROVIDENCE & WORCESTER RAIL CO. will be acquired by Genesee & Wyoming Inc., of Darien, Conn., for approximately $126 million. / COURTESY PROVIDENCE & WORCESTER RAIL CO.

Genesee & Wyoming Inc. said Monday that it has agreed to acquire Providence and Worcester Railroad Co. for approximately $126 million, or $25 per share.
A news release from Darien, Conn.-based Genesee said that the acquisition is expected to close following the receipt of P&W shareholder approval in the fourth quarter of 2016.
Providence & Worcester, which is headquartered in Worcester, Mass., and operates in Rhode Island, Massachusetts, Connecticut and New York, is contiguous with G&W’s New England Central Railroad and Connecticut Southern Railroad.
“The acquisition of P&W is an excellent strategic fit with G&W’s contiguous railroads, the New England Central and the Connecticut Southern. … Our acquisition of the P&W will ultimately enhance the efficiency and customer service of rail in New England,” Jack Hellmann, president and CEO of G&W, said.

Rail service is provided by approximately 140 P&W employees with 32 locomotives across 163 miles of owned track and over approximately 350 miles under track access agreements, including exclusive freight access over Amtrak’s Northeast Corridor between New Haven, Conn., and Providence and trackage rights over Metro-North Commuter Railroad, Amtrak and CSX Corp. between New Haven and Queens, N.Y.
P&W serves auto, chemicals, metals and lumber customers in southeastern New England, handling approximately 43,000 carloads and intermodal units annually. P&W also provides rail service to three ports (Providence, Davisville and New Haven) and to a U.S. Customs bonded intermodal terminal in Worcester. P&W also owns approximately 45 acres of undeveloped waterfront land in East Providence, R.I., that was initially created as a deep water, rail-served port through a $12 million investment. G&W expects to sell this undeveloped land.
According to the news release, G&W anticipates P&W will generate approximately $35 million of revenue in its first year of operation.
The closing of the transaction also is subject to the approval of the Surface Transportation Board.

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