Genesee & Wyoming acquires Providence and Worcester Railroad Company

• Genesee & Wyoming (NYSE:GWR) announced that it acquired Providence and Worcester Railroad Company (PWX) for $25.00 per share.
• The $126M deal  is expected to close following the receipt of P&W shareholder approval in Q4.
• Upon approval by the Surface Transportation Board, P&W would be managed as part of G&W’s Northeast Region.
• The company expects the acquisition to unlock significant cost savings through overhead, operational, and long-term network efficiencies as well as to generate significant new commercial opportunities.
• G&W expects P&W will require approximately $3M of annual capital expenditures and have depreciation and amortization expense of approximately $3M.
• PWX +49.20% premarket to $24.32.
• Source: Press Release