GWI to acquire Freightliner Group

Written by Jenifer Nunez, assistant editor

Genesee & Wyoming Inc. has agreed to acquire approximately 95 percent of the shares of Freightliner Group Limited (Freightliner) from Arcapita and other shareholders for cash consideration of approximately $755 million and to assume approximately $13 million in net debt and capitalized leases.

 

Members of the existing Freightliner management team will retain an approximate five percent ownership interest with GWI to own 100 percert by mid-2020. The acquisition is expected to close during the first quarter of 2015.

Headquartered in London, England, Freightliner is an international freight rail operator with operations in the United Kingdom, Poland, Germany, the Netherlands and Australia.

“The acquisition of Freightliner is an excellent strategic fit for GWI,” said Jack Hellmann, president and chief executive officer of GWI. “First, we are adding a world class intermodal and heavy-haul franchise in the United Kingdom that will be the foundation of GWI’s European Region. Second, the overlap of our respective rail businesses in Australia and the Netherlands will unlock operating synergies and expand our presence in each of those markets. Third, we are pleased to be joined by a highly-talented management team who have a long track record of success in building Freightliner over the past two decades. Working together, we expect to build the existing business and also unlock a range of attractive rail investment opportunities worldwide.

“GWI brings additional investment firepower, extended international reach and increased below rail infrastructure expertise to add to the existing strengths of the Freightliner Group,” said Russell Mears, chief executive officer of Freightliner Group. “Their commitment to safety and service quality in all activities mirrors our own values.”

 

 

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