U.S. freight railroadsOpens a New Window. operator Genesee & WyomingOpens a New Window.on Monday agreed to be acquired by Toronto-based Brookfield Asset Management and Singaporean sovereign wealth fund GIC in a deal valued at about $8.4 billion, including debt.
The announcement comes a day after Reuters reported news of the development, citing sources. The Transaction will result in G&W becoming a privately held company. G&W owns a portfolio of 120 short line railroads, predominantly in North America, with operations in Europe and Australia.
“We believe this transaction is an excellent outcome for all G&W stakeholders,” said Jack Hellmann, G&W Chairman and Chief Executive Officer. “For our current stockholders, the sale price realizes significant value and represents a 39.5 percent premium to our March 8 share price. And for long-term investors who have owned our shares for the past two decades, the sale price represents a return of more than 5,400 percent.”
Pursuant to the agreement, each issued and outstanding share of G&W will be converted into the right to receive $112 per share in cash.