BRX Transportation Holdings has completed its previously announced acquisition of Pioneer Railcorp, a US-based railway holding company.
Pioneer Railcorp owns 15 short-line common carrier railway operations in 12 US states. Additionally, its portfolio includes an equipment leasing company, two service companies and a contract services switching company.
In May, BRX Transportation Holdings signed a definitive agreement to acquire Pioneer for $18.81 per share in cash. Earlier this month, the transaction was approved by Pioneer Railcorp shareholders.
BRX Transportation Holdings is a special-purpose entity created as a partnership between Related Infrastructure, Brookhaven Rail Partners and Stephens Capital Partners to acquire the railroad company.
With the acquisition now complete, Pioneer will be led by BRX partner Alex Yeros as its CEO. Now, the special purpose entity plans to invest additional capital to upgrade Pioneer’s existing infrastructure and expand its franchise.
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Related Instructure managing partner Andrew Right said: “Short-line railroads play a key role in our country’s transportation infrastructure and are critical to the national and global economy.
“Pioneer, operating across 12 states, services a diverse set of customers with a wide array of cargo from agriculture to finished products.
“We are excited to work with Brookhaven and the talented team at Pioneer to invest in the business, to provide even better service to our customers and to further grow the business by adding new customers who can benefit from the reliability and cost advantages of rail transport and by driving expansion across the platform.”
BRX aims to acquire additional short-line railway companies in the future to bolster its portfolio.