Grupo México, through its Transportation Business Unit Grupo México Transportes (GMXT), announced that it has completed the acquisition of Florida East Coast Holdings Corp. that owns Florida East Coast Railway.
Before closing the operation, Grupo México Transportes obtained the approvals required from all of the regulatory agencies in the United States, including the Committee on Foreign Investment in the United States, the Surface Transportation Board, and the Federal Communications Commission.
The value of the acquisition was USD 2 billion, financed under two loans: USD 1.55 billion from BBVA and Credit Suisse, and a USD 250 million loan from Santander. The rest of the sum was funded with GMXT’s own resources and USD 97 million in debt at the Florida East Coast Holdings Corp level.
This acquisition positions GMXT as a relevant player in the North American transport business, together with its current operations in Mexico and the state of Texas.
In March, the two sides entered into an agreement under which the Mexican company will acquire FEC in an all cash transaction.
Florida East Coast Railway operates 565 km of mainline track along the east coast of Florida with direct rail access to South Florida’s ports and serves five intermodal terminals and provides full service drayage for our customers.
Grupo México Transportes operates 10,570 km of rail network across 24 states in Mexico and the state of Texas in the US and has connections with 8 port terminals. In 2016, the company registered USD 1.76 billion in sales and had a traffic of 54.44 billion t-km.
Share on:
