GWI plans to integrate RailAmerica’s 45 railroads into GWI’s eight existing North American Regions and to create two new regions, headquartered in Michigan and Texas, respectively. Centralized administrative functions, including accounting, information technology, human resources, operations support, customer service and others will continue to be provided from offices in both Jacksonville, FL and Rochester, NY, with GWI’s corporate headquarters remaining in Connecticut.
GWI is an experienced acquirer of short line railroads, having integrated 65 railroads through 36 acquisitions since 1985. The operational integration of RailAmerica will be led by GWI’s current Chief Operating Officer, Jim Benz, who will manage the integration until its completion, postponing his previously announced retirement. Upon Mr. Benz assuming his integration responsibilities, David A. Brown will succeed Mr. Benz as Chief Operating Officer of GWI.
Expected TimingRailAmerica’s majority stockholder, RR Acquisition Holding LLC, controlled by Fortress Investment Group, executed a written consent adopting the merger agreement. No further approval of the stockholders of RailAmerica is required to adopt the merger agreement. However, until the 30 th day following the execution of the merger agreement, RailAmerica may terminate the merger agreement to accept a superior proposal, subject to payment to GWI of a termination fee of $49 million.
* * * * *About The Carlyle GroupThe Carlyle Group is a global alternative asset manager with $159 billion of assets under management in 94 active funds and 63 fund of funds vehicles as of March 31, 2012. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Fund of Funds Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has developed expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,300 people in 32 offices across six continents. www.carlyle.com. About Genesee & Wyoming Inc.GWI owns and operates short line and regional freight railroads and provides railcar switching services in the United States, Australia, Canada, the Netherlands and Belgium. In addition, we operate the Tarcoola to Darwin rail line, which links the Port of Darwin with the Australian interstate rail network in South Australia. Operations currently include 66 railroads organized in 10 regions, with more than 7,600 miles of owned and leased track and approximately 1,400 additional miles under track access arrangements. We provide rail service at 17 ports in North America and Europe and perform contract coal loading and railcar switching for industrial customers. About RailAmericaRailAmerica, Inc. owns and operates short-line and regional freight railroads in North America, operating a portfolio of 45 individual railroads with approximately 7,500 miles of track in 28 U.S. states and three Canadian provinces.
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