Yesterday, RailAmerica Inc. announced it reached an agreement to acquire Atlas Railroad Construction Co. and related assets for $21.5 million in cash plus closing adjustments for working capital estimated to total $2.5 million. The transaction is expected to close today.
Founded in 1954, Atlas is a railroad engineering, construction, maintenance and repair firm that provides various railroad construction services to public transit agencies, regionals, short lines and industrial customers.
“We expect the next several years to see a dramatic increase in spending on railroad infrastructure driven by government stimulus programs and increased investments by North American railroads upgrading and improving their rail lines. Acquiring Atlas ... positions RailAmerica to benefit directly from this spending,” said RailAmerica President and Chief Executive Officer John Giles in a prepared statement.
Atlas will enable RailAmerica — which owns 40 U.S. and Canadian regionals and short lines — to expand into regions where its railroads already have a presence and provide new services, he said. RailAmerica plans to retain the Atlas brand and maintain Atlas’ headquarters in western Pennsylvania.
Source: Progressive Railroading Daily News
