Genesee & Wyoming Inc. (GWI) has reached an agreement with Pinsly Railroad Co. to acquire Pinsly’s subsidiaries in Arkansas for $40 million, GWI announced Thursday.
The deal is expected to be complete in early January, and the acquisition includes the Arkansas Midland Railroad, Prescott & Northwestern Railroad, Warren & Saline River Railroad and two Arkansas transload operations managed by Pinsly’s Railroad Distribution Services subsidiary.
Total operations include 137 miles of owned and leased track, 70 employees and 16 locomotives, and serve the Hot Springs and Little Rock areas as well as the southwestern and southeastern portions of the state.
The railroads haul about 35,000 carloads per year and serve a customer base in such industries as aluminum, forest products, aggregates, energy and carton board.
Pinsly Arkansas will be managed as part of GWI’s Central Region, which includes six short lines in Arkansas, and will be led by regional senior vice president Dewayne Swindall.
“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,” said GWI president and CEO Jack Hellmann in a news release. “Following the acquisition, we 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.”
GWI owns and operates 112 short lines and regionals in the United States, Canada, Australia, the Netherlands and Belgium.
Sign up for Daily E-news
