Brookfield Infrastructure and GIC acquires Genesee & Wyoming for $8.4bn

Brookfield Infrastructure and GIC will acquire G&W in a transaction valued at approximately $8.4bn including debt. G&W will then become a privately held company.

G&W owns a portfolio of 120 short line railroads, predominantly in North America, with operations in Europe and Australia. It employs 8,000 people and has 3,000 customers. Through its subsidiaries worldwide, the business provides transportation infrastructure services over more than 26,000km of track, providing access to its large customer base.

Brookfield Infrastructure Partners is a global infrastructure company that owns and operates assets in the utilities, transport, energy and data infrastructure sectors across North and South America, Asia Pacific and Europe. GIC is a global investment firm established in 1981 to manage Singapore’s foreign reserves. Brookfield Infrastructure’s investment will be approximately $500m of equity. The remainder of the business will be owned by Brookfield Infrastructure’s institutional partners and GIC.

G&W’s six North American regions serve 41 US states and four Canadian provinces and include 114 short line and regional freight railroads with more than 13,000 track-miles.

Its Australia Region serves New South Wales, the Northern Territory and South Australia and operates the 1,400-mile Tarcoola-to-Darwin rail line. The Australia Region is 51.1% owned by G&W and 48.9% owned by a consortium of funds and clients managed by Macquarie Infrastructure and Real Assets.

G&W’s UK/Europe Region includes the UK’s largest rail maritime intermodal operator and second-largest freight rail provider, as well as regional rail services in Continental Europe.

G&W subsidiaries and joint ventures also provide rail service at more than 40 major ports, rail-ferry service between the U.S. Southeast and Mexico, transload services, contract coal loading, and industrial railcar switching and repair.

The transaction has received the unanimous approval of G&W’s Board of Directors and is subject to approval by G&W’s stockholders.

The transaction is expected to close by the end of this year or early 2020 and is subject to customary closing conditions.

Sam Pollock, Chief Executive Officer of Brookfield Infrastructure, said. “This is a rare opportunity to acquire a large-scale transport infrastructure business in North America. G&W will be a significant addition to our global rail platform and will expand our presence in this sector to four continents. 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.”

Source: Genesee & Wyoming Inc.