BROOKFIELD Infrastructure is to acquire Genesee & Wyoming as part of a US$8.4bn deal, it has been announced.
The transaction is set to 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 also in Australia and Europe.
Via subsidiaries worldwide, the business is said to provide transportation infrastructure services over more than 26,000km of track, providing access to its well-diversified customer base.
“We believe this transaction is an excellent outcome for all G&W stakeholders,” said Jack Hellmann, G&W chairman and chief executive.
Mr Hellman said the long-term investment horizon of Brookfield Infrastructure and GIC as seasoned infrastructure investors was perfectly aligned with the long lives of G&W railroad assets.
“They are also fully supportive of our business plan, which will continue to be focused on safety, customer service, and growing our footprint to provide more opportunity for our people,” he said.
“We also expect this transaction will allow us to further enhance our business as we benefit from Brookfield Infrastructure/GIC’s expertise in real estate and technology, as well as relationships with their rail-centric/complementary portfolio companies.”
Brookfield Infrastructure chief executive Sam Pollock said the acquisition was “a rare opportunity” to acquire a large-scale transport infrastructure business.
“G&W will be a significant addition to our global rail platform and will expand our presence in this sector to four continents,” he said.
“G&W provides critical transportation services to more than 3,000 customers, and its cash flows have proven to be highly resilient over many years.”