Brookfield Infrastructure Partners, Canada, announced plans to acquire Genesee & Wyoming Inc. (G&W), Darien, Conn., for approximately $8.4 billion. Under the new ownership, G&W will continue to focus on world-class safety and service, while pursuing the company’s strategic goals.
G&W owns a portfolio of 120 short-line railroads, predominantly in North America, with operations in Europe and Australia. Through its subsidiaries worldwide, the business provides transportation infrastructure services over more than 26,000 kilometers of track.
“We believe this transaction is an excellent outcome for all G&W stakeholders,” says Jack Hellmann, chairman and CEO of G&W. “For our current stockholders, the sale price realizes significant value and represents a 39.5% premium to our March 8th share price. And, for long-term investors who have owned our shares for the past two decades, the sale price represents a return of more than 5,400%.”
“For our customers, employees and Class I partners, the long-term investment horizon of Brookfield Infrastructure and GIC as seasoned infrastructure investors is perfectly aligned with the long lives of G&W railroad assets, which are integral to the local economies that we serve in North America and around the world,” Hellmann adds. “They are also fully supportive of our business plan, which will continue to be focused on safety, customer service and growing our footprint to provide more opportunity for our people. We also expect this transaction will allow us to further enhance our business as we benefit from Brookfield Infrastructure/GIC’s expertise in real estate and technology, as well as relationships with their rail-centric/complementary portfolio companies.”
“This is a rare opportunity to acquire a large-scale transport infrastructure business in North America,” says Sam Pollock, chief executive officer of Brookfield Infrastructure. “G&W will be a significant addition to our global rail platform, and will expand our presence in this sector to four continents. G&W provides critical transportation services to more than 3,000 customers, and its cash flows have proven to be highly resilient over many years. Brookfield Infrastructure is well suited to work with the company to continue to improve the business, given our significant experience owning and operating rail, ports and other large scale, transportation infrastructure businesses.”
“As a long-term investor, GIC is confident G&W will continue to generate steady profitability, given its diversified operations and customer base,” adds Ang Eng Seng, chief investment officer for infrastructure at GIC. “We look forward to partnering with G&W’s management and Brookfield Infrastructure to support the future growth of the company.”