Genesee & Wyoming Inc. (GWI) Aug. 20 announced plans to acquire Utah Railway Co. from Mueller Industries Inc. for $54 million cash. The short-line holding company would purchase the stock of Utah Railway and its wholly owned subsidiary Salt Lake City Southern Railroad.
GWI also named James Davis, Rail Link vice president-field operations, general manager of its new Utah region.
Founded in 1912, Utah Railway operates over 45 miles of owned track and 378 miles under trackage agreements, and interchanges with Union Pacific Railroad and Burlington Northern Santa Fe. The short line offers switching services, and serves industrial and coal customers in and around Salt Lake City through trackage rights from Utah Transit Authority.
GWI plans initially to fund the acquisition, which is expected to be finalized by the end of the third quarter, under its existing $103 million revolving credit facility.
The company recently received an underwriting commitment from Fleet National Bank for $250 million in new senior secured credit facilities to access capital for general corporate purposes, including additional acquisitions.
"As our most significant domestic acquisition to date, we believe that under our ownership we will be able to build upon the long history of Utah Railway and create new opportunities for growth," said Mortimer Fuller III, GWI chairman and chief executive officer, in a prepared statement.
Source: Progressive Railroading Daily News
