Genesee & Wyoming Australia Completes Acquisition of GRail, Issues 49% Equity Stake
December 01 2016 - 6:00AM
Business Wire
Genesee & Wyoming Inc. (G&W) (NYSE:GWR) announced today
that Genesee & Wyoming Australia (GWA) has completed the
acquisition of Glencore Rail (GRail) for A$1.14 billion and has
concurrently issued a 49% equity stake in GWA to funds and clients
managed by Macquarie Infrastructure and Real Assets (MIRA).
In conjunction with the acquisition of the GRail business, which
includes nine train sets (30 locomotives and 894 wagons), a
long-term, take-or-pay contract with Glencore Coal Pty Limited (GC)
has been entered into, subject to existing agreements and certain
limitations, to exclusively haul all coal produced at GC’s existing
mines in the Hunter Valley to the Port of Newcastle.
The acquisition strengthens GWA’s nationwide footprint in
Australia, adding a significant presence in the Hunter Valley coal
supply chain and complementing GWA’s existing intermodal,
agricultural and mining business in South Australia and the
Northern Territory.
About G&W
Genesee & Wyoming owns or leases 121 freight railroads
worldwide that are organized in 10 operating regions with
approximately 7,200 employees and more than 2,800 customers.
- G&W’s eight North American regions
serve 41 U.S. states and four Canadian provinces and include 113
short line and regional freight railroads with more than 13,000
track-miles.
- G&W’s Australia Region provides
rail freight services in New South Wales, including in the Hunter
Valley, and in the Northern Territory and South Australia,
including operating the 1,400-mile Tarcoola-to-Darwin rail
line.
- G&W’s U.K./Europe Region is led by
Freightliner, the U.K.’s largest rail maritime intermodal operator
and second-largest rail freight company. Operations also include
heavy-haul in Poland and Germany and cross-border intermodal
services connecting Northern European seaports with key industrial
regions throughout the continent.
G&W subsidiaries provide rail service at more than 40 major
ports in North America, Australia and Europe and perform contract
coal loading and railcar switching for industrial customers.
This press release contains “forward-looking statements”
relating to the proposed transaction by G&W and GWA. Such
forward-looking statements are based on current expectations and
involve inherent risks and uncertainties. For a discussion of such
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see “Risk
Factors” in G&W’s Annual Report on Form 10-K for the most
recently ended fiscal year. G&W does not undertake, and
expressly disclaims, any duty to publicly update any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20161201005371/en/
G&W Corporate CommunicationsMichael Williams,
1-203-202-8900www.gwrr.com
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