Genesee & Wyoming has announced today that it has agreed to acquire Providence and Worcester Railroad Company for USD 126 million. The acquisition is expected to close following the receipt of P&W shareholder approval in the fourth quarter of 2016.
In the first year of operation, G&W anticipates P&W will generate approximately USD 35 million of revenue and USD 12 million of EBITDA, including realization of USD 8 million of immediate overhead and operational cost savings.
G&W expects to fund the approximately USD 126 million acquisition through its revolving credit facility under which it had available capacity of Usd 542 million as of June 30, 2016. As previously noted, G&W expects to sell the land in East Providence, R.I., which was developed through a USD 12 million investment.
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