RailAmerica has signed an agreement to acquire Marquette Rail LLC for $40 million ‘subject to final adjustments for working capital’.
Marquette Rail, based in Ludington, Michigan, operates 126 miles of track and serves customers primarily in the chemical, pulp & paper, and non-metallics industries.
RailAmerica President and CEO John Giles said:
“We are extremely pleased to add this property to our existing Michigan rail portfolio. The acquisition of Marquette represents an attractive opportunity to invest in a high quality franchise with a solid base of revenue from large, long-term customers and drive substantial near-term growth from new developments on the line.
“In addition, the railroad is in close proximity to RailAmerica’s existing Michigan operations, which we expect will create significant operating efficiencies.”
For the next twelve months, RailAmerica anticipates Marquette will generate approximately $13 million in revenue, $4 million in operating income (excluding closing costs) and $2 million in depreciation and amortization.