Providence and Worcester Railroad sold for $126M
David Horree
Darien, Conn.-based G&W will pay P&W shareholders $25 per share of common stock, for a total of roughly $126 million.
Providence and Worcester Railroad Co. has been purchased by Genesee & Wyoming Inc. for approximately $126 million, the Worcester company’s new owners announced Wednesday.
Under the deal, Darien, Conn.-based G&W will pay shareholders $25 per share of common stock, for a total of roughly $126 million.
Although the sale has gone through, following the approval by P&W shareholders last week, the U.S. Surface Transportation Board (STB) must still approve G&W’s control of P&W, which is anticipated to occur in the fourth quarter of 2016, according to G&W. Once that approval is received, P&W would be managed as part of G&W’s Northeast Region, led by Senior Vice President Dave Ebbrecht.
P&W, which operates in Massachusetts, Rhode Island, Connecticut and New York on 163 miles of owned track, has 140 employees and 32 locomotives that handle approximately 43,000 carloads and intermodal units annually, according to G&W.
When the sale was announced in August, G&W projected that P&W would generate approximately $35 million in revenue and $12 million of earnings before interest, taxes, depreciation and amortization. It will also require $3 million in capital expenditures, according to 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.
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