Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, May 31, 2019

Article Excerpt

GENESEE & WYOMING INC., $95.22, symbol GWR on New York, owns and operates 120 railroads across North America, Australia, Europe and the U.K. In March 2019, Genesee announced that it was exploring strategic options, including the sale of all or part of the business. The company has now reportedly attracted takeover interest from several large investment firms, including Brookfield Asset Management (symbol BAM.A on Toronto), Blackstone Group (symbol BX on New York), Stonepeak Infrastructure Partners and EQT Partners. Genesee has a history of deals with private investors. In 2012, Carlyle Group LP agreed to invest as much as $800 million in the company to let it acquire RailAmerica Inc. for $2 billion. In 2016, Genesee bought Glencore Rail and at the same time sold a 49% stake in that business to Macquarie Infrastructure and Real Assets—the private equity unit of Macquarie Group Ltd. In the three months ended March 31, 2019, Genesee & Wyoming’s overall revenue fell by 2.9% to $558.1 million, from $574.7…

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