Shareholders approve $126M Providence and Worcester Railroad merger
David Horree
Darien, Conn.-based G&W will pay P&W shareholders $25 per share of common stock, for a total of roughly $126 million.
The acquisition of the Providence and Worcester Railroad Company by Genesee & Wyoming Inc. got the green light on Wednesday after it was approved by P&W shareholders.
Under the deal, Darien, Conn.-based G&W will pay shareholders $25 per share of common stock, for a total of roughly $126 million. The sale still needs approval from federal regulators to get the official go-ahead, according to G&W.
If the deal receives approval from the Surface Transportation Board, Worcester-based P&W will be managed as part of G&W’s Northeast Region and will be managed by Senior Vice President Dave Ebbrecht. When the sale was announced in August, G&W projected that P&W would generate approximately $35 million in revenue and $12 million of earnings before interest, taxes, depreciation and amortization. It will also require $3 million in capital expenditures, according to G&W.
P&W, which operates in Massachusetts, Rhode Island, Connecticut and New York on 163 miles of owned track, has 140 employees and 32 locomotives that handle approximately 43,000 carloads and intermodal units annually, according to G&W. The merger is scheduled to close on or around Nov. 1 of this year, subject to remaining customary closing conditions, according to P&W.
Following the vote, P&W Chairman of the Board and CEO Robert H. Eder said he was grateful for the overwhelming support of shareholders.
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