G&W to buy Freightliner for £490m

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US railroad holding company Genesee & Wyoming Inc. (G&W) has agreed to acquire 95 per cent of Freightliner from Arcapita for £490 million.

The Freightliner management team will retain 5 per cent of the company initially, with a view to transferring the entire business to G&W by mid-2020.

Freightliner, which employs around 2,500 people, operates in the UK, Europe and Australia.

In a statement the two companies said: “The change of ownership will not have any impact on the day-to-day operations of the group and its subsidiaries.

“All existing arrangements for each of Freightliner’s operating companies together for all staff will remain unaltered.”

Jack Hellmann, president and chief executive officer of G&W, said: “The acquisition of Freightliner is an excellent strategic fit for G&W.  We are excited to be adding a world-class intermodal and heavy haul franchise in the United Kingdom that will be the foundation of G&W’s European Region.

“Further, 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.

“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.”

The deal is expected to be completed in Q1 2015.

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