Fortress Investment Group LLC is said to consider a sale of Florida East Coast Railway (FECR). Interested buyers might be CSX and Norfolk Southern; Genesee & Wyoming would also likely be a candidate. Barclays and Morgan Stanley are involved in an advisement role for the potential transaction.
FECR is a 351-mile freight rail system located along the east coast of Florida, and is the exclusive rail provider to South Florida’s seaports and connects with other railway systems to move freight throughout the country. Since the rail assets of FECR provide exclusive access to the top two container seaports in the state of Florida, perceived competitive advantages may block any deal for Class I’s.
Florida East Coast Industries, Inc. (FECI), the holding company of FECR, was taken private in 2007 by funds managed by Fortress in a transaction valued at around $3.5 billion.
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