US based company Genesee & Wyoming Inc. announced, on February 24, that it has agreed to acquire approximately 95% of the shares of Freightliner Group from Arcapita for approximately £490 million (US$755 million) and to assume approximately £8.5 million (US$13 million) in net debt and capitalized leases. Members of the existing Freightliner management team will retain an approximate 5% ownership interest with G&W to own 100% by mid-2020. The acquisition is expected to close during the first quarter of 2015.
This agreement will be mutually beneficial for both parties, and Freightliner Group will continue to invest in new technologies and enhance international activities. Russell Mears, Chief Executive Officer of Freightliner Group said, “Genesee & Wyoming brings additional investment firepower, extended international reach an rail infrastructure expertise to add to the existing strengths of the Freightliner Group”. Jack Hellmann, President and Chief Executive Officer of Genesee & Wyoming Inc., commented,
“The acquisition of Freightliner is an excellent strategic fit for G&W”.
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