Providence and Worcester shareholders OK sale to G&W

Providence and Worcester Railroad Co. (PWRR) shareholders yesterday approved the railroad's acquisition by Genesee & Wyoming Inc. (G&W).

Per the merger agreement, PWRR will merge with G&W subsidiary Pullman Acquisition Sub Inc., with PWRR becoming a wholly owned subsidiary of G&W, according to a press release.

PWRR shareholders also approved an advisory proposal for PWRR executive officers' compensation.

"With today's vote, we move one step closer to completing the transaction with Genesee & Wyoming, to the benefit of our shareholders, employees, customers, and the communities we serve," said PWRR Chairman and Chief Executive Officer Robert Eder.

PWRR is a regional operating in Massachusetts, Rhode Island, Connecticut and New York. The sale to G&W is a cash deal worth about $126 million, according to the Worcester Telegram  newspaper, which attended the shareholders' meeting. The transaction is expected to close on or around Nov. 1 pending the remaining customary closing conditions.