Providence & Worcester railroad to be bought for $126M
Business Wire
Headquartered in Worcester, Mass., and operating in Rhode Island, Massachusetts, Connecticut and New York, P&W is contiguous with G&W's New England Central Railroad (NECR) and Connecticut Southern Railroad (CSO)
The Providence & Worcester Railroad Co. headquartered in Worcester is under an agreement to be bought by Genesee & Wyoming Inc., which operates connected lines throughout Connecticut and Massachusetts.
G&W announced Monday it entered into an agreement to buy P&W for $25 per share, coming to roughly $126 million. The acquisition is expected to close following a P&W shareholder approval vote in the fourth quarter.
P&W operates in Massachusetts, Rhode Island, Connecticut and New York on 163 miles of owned track and over approximately 350 miles under track access agreements, including exclusive freight access over Amtrak’s Northeast Corridor between New Haven and Providence, according to a press release. The company has 140 employees and 32 locomotives that handle approximately 43,000 carloads and intermodal units annually.
G&W 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, according to the company. G&W’s eight North American regions serve 41 U.S. states and four Canadian provinces and include 114 short line and regional freight railroads with more than 13,000 track-miles.
Upon approval by the Surface Transportation Board (STB), P&W would be managed as part of G&W’s Northeast Region, led by Senior Vice President Dave Ebbrecht. The acquisition is anticipated to unlock significant cost savings through overhead, operational and long-term network efficiencies and to generate significant new commercial opportunities, according to G&W.
Jack Hellmann, president and CEO of G&W, said in a statement that he was excited to welcome P&W’s employees to G&W.
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