Genesee & Wyoming, Inc. (G&W) has announced that it has signed an agreement with Pinsly Railroad Company of Westfield, Massachusetts to acquire certain subsidiaries that constitute Pinsly’s Arkansas Division for $40 million dollars in cash, subject to adjustment for final working capital. The storied short line Prescott & Northwestern Railroad is included along with the Warren & Saline River Railroad, two railroads sold to Pinsly by Potlatch. The five other properties operate as Arkansas Midland Railroad, including a line to the Georgia-Pacific sawmill near Gurdon. (This line is what’s left of the defunct Caddo Valley Railroad whose problems were documented extensively, and mostly exclusively by Saratoga Arkansas Digest www.saratogaarkdigest.webs.com, and can be read by scrolling down the site.) The Arkansas operations of Pinsly are headquartered in Jones Mills, Arkansas, and also include the two Arkansas transload operations of Pinsly Railroad Distribution Services subsidiary. Genesee & Wyoming operates the Kiamichi Railroad that serves Hope and Ashdown. The acquisition is subject to customary closing conditions, including the expiration of the 30-day notice period required by the U.S. Surface Transportation Board to obtain authority to acquire the lines, a process that’s expected to be completed by January 2015. Operations are composed of 137 miles of owned and leased track, 70 employees and 16 locomotives that serve areas in southwest and southeastern portions of the state as well as in the Hot Springs and Little Rock areas. The railroads currently haul approximately 35,000 carloads per year including aluminum, forest products, aggregates, energy and carton board, as well as inbound carbon black and other chemicals for Firestone in Prescott, the only customer currently on the PNW line. Pinsly Arkansas will be managed as part of G&W’s Central Region, which includes six existing short line railroads in Arkansas, under the leadership of Regional Senior Vice President Dewayne Swindall. Jack Hellman, president and chief executive officer of G&W, commented, “Over the past 22 years, the Pinsly team has built an impressive cluster of short line railroads in Arkansas, with a clear focus on safety and customer service. Following the acquisition, G&W will own nine short line railroads in Arkansas, and we are excited about the opportunity to support and drive further economic growth in the state.” John Levine, president and CEO of Pinsly, said, “Pinsly Railroad Company is very pleased to be transitioning ownership of its Arkansas Division to Genesee & Wyominy. G&W is a highly respected leader in our industry and our customers, employees and communities will be well positioned for continued growth and success in the coming years. I am very pleased and proud of the accomplishments of our talented and dedicated Arkansas team over the past 22 years. We look forward to working with G&W towards a successful closing and transition of the business in January 2015.”
Thanks to Saratoga, AR Digest.