US-based railroad holding company Genesee & Wyoming (G&W) has agreed to acquire around 95% of the shares of freight rail operator Freightliner from Arcapita and other shareholders.
G&W will purchase the stake for a cash consideration of approximately £490m and will assume roughly £8.5m in net debt and capitalised leases.
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The remaining 5% stake will be retained by members of the existing Freightliner management team with G&W to own 100% by mid-2020, the company stated.
G&W president and CEO Jack Hellmann said: "The acquisition of Freightliner is an excellent strategic fit for G&W.
"For Freightliner’s customers, we are committed to deliver the same locally focused and responsive rail service that is the hallmark of both Freightliner and G&W."
The acquisition is expected to complete in the first quarter of this year.
With this acquisition, G&W’s business will be restructured into North American short line and regional railroad operations, as well as Australian and European operations.
Freightliner currently operates in open-access rail freight markets and its fleet of primarily leased equipment includes approximately 250 standard gauge locomotives and 5,500 wagons.
Freightliner Group Russell Mears said: "G&W brings additional investment firepower, extended international reach and increased below rail infrastructure expertise to add to the existing strengths of the Freightliner Group.
A UK consortium consisting of Serco, Freightliner Group and Network Rail Consulting recently signed a contract worth more than £120m with Saudi Railway Company (SAR) to deliver management and technical support for operations on the North South Railway (NSR).
