Genesee & Wyoming Inc. (GWI) recently reached an agreement with Maryland Midland Railway Inc. to acquire an 87.4 percent stake in the 63-mile short line for $29.1 million.
Expected to close in the fourth quarter, the transaction is subject to customary closing conditions, including Maryland Midland stockholder approval. GWI already has secured the number of shareholder voting agreements necessary to approve the deal, the short-line holding company said.
Maryland Midland operates lines between Glyndon and Highfield, and Walkersville and Taneytown, Md., and interchanges with CSX Transportation. The short line's biggest customer and largest shareholder is Lehigh Cement, which plans to retain its 12.6 percent stake in the railroad.
Maryland Midland is located about 40 miles from GWI's York Railway Co. in southeastern Pennsylvania.
"The Maryland Midland is a good geographic fit with our York operations," said GWI Chief Executive Officer John Hellmann in a prepared statement. "This proximity lends itself to efficiencies that make the financial combination attractive."
GWI owns regionals and short lines in the United States, Canada and Australia, and retains a minority interest in a Bolivian railroad.
Source: Progressive Railroading Daily News
