Author Topic: Genesse & Wyoming (CIND, CERA, ISRR, TPW, CFE, IORY in Indiana)  (Read 1603 times)

scraphauler

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"Old" News (as in its almost 24 hours old) but it hasn't been posted here yet,  So here goes with no speculation on my part on what it means for future

June 30 (Reuters) - Investment firm Brookfield Asset Management Inc(BAM) has agreed to acquire U.S. freight railroad owner and operator Genesee & Wyoming Inc(GWR) for close to $9 billion, including debt, people familiar with the matter said on Sunday.
Genesee & Wyoming's (GWR) decision to sell itself comes after its string of acquisitions of short-line railroads made investing in the maintenance of its expanding network more expensive, amid weakness in some of its core North American markets for the transport of steam coal and agricultural products.
Some buyout firms such as Brookfield specialize in helping companies they buy bankroll further acquisitions to consolidate their sectors. The deal shows Brookfield is not fazed by the uncertainty that the trade war between the United States and China has cast on Genesee & Wyoming's(GWR) business.
A Brookfield infrastructure fund has agreed to pay more than $110 per share in cash for Genesee & Wyoming(GWR), the sources said, requesting anonymity ahead of an official announcement expected as early as Monday. Genesee & Wyoming(GWR) shares ended trading on Friday at $100.
Toronto-based Brookfield declined to comment, while Genesee & Wyoming(GWR) did not immediately respond to a request for comment.
Based in Darien, Connecticut, Genesee & Wyoming(GWR) owns or leases 120 freight railroads in the United States, Canada, Britain and continental Europe.
The company's revenues have increased at a compound annual growth rate of 16.8% since it floated in the stock market in 1996, rising to $2.3 billion in 2018 from $77.8 million, according to Genesee & Wyoming's(GWR) latest annual report.
Much of that growth was fueled by Genesee & Wyoming's(GWR) acquisition of short-line rail assets from "Class I" carriers in North America, the biggest operators focusing on longer routes. The transport of many commodities relies on the short-line rail roads that Genesee & Wyoming(GWR) operates.
"Medium-term growth opportunities (for Genesee & Wyoming(GWR)) remain solid, including a healthy North American pipeline of industrial development projects and spot-coal haulage contracts in Australia," Morningstar analysts wrote in a research note last month.
The acquisition of Genesee & Wyoming(GWR) would be the latest big leveraged buyout by Brookfield, which agreed last year to buy Johnson Controls International Plc's(JCI) power solutions business for about $13 billion.
Bloomberg News reported last week that an affiliate of Brookfield was "the frontrunner" to acquire Genesee & Wyoming(GWR) following an auction for the company. (Reporting by Joshua Franklin and Greg Roumeliotis in New York; Editing by Peter Cooney)

rrnut282

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Re: Genesse & Wyoming (CIND, CERA, ISRR, TPW, CFE, IORY in Indiana)
« Reply #1 on: July 01, 2019, 05:32:23 PM »
Not sure what to make of this.  I would assume a couple lines will be cast off the mother ship, if nothing else. 
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Bob Durnell

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Re: Genesse & Wyoming (CIND, CERA, ISRR, TPW, CFE, IORY in Indiana)
« Reply #2 on: July 01, 2019, 06:01:00 PM »
I guess the question I have is the same question I have when the hedge funds of the world get involved with the class ones.  Are the new owners looking for an operating money making investment, or are they just interested in wringing some cash out of the company and leave a bloody half dead carcass?

ckpcpqq

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Re: Genesse & Wyoming (CIND, CERA, ISRR, TPW, CFE, IORY in Indiana)
« Reply #3 on: July 01, 2019, 11:08:12 PM »
Maybe this is why they sold.  Their stock price has risen nicely the past couple of months but perhaps because the market was anticipating a buyout.


Earnings Metrics GAAP
vs. Industry: Road & Rail

GWR                               Industry Average
EPS (TTM)
$3.51                             $5.06

P/E (TTM)
28.49                             28.52             

P/E (5-Year Avg)
19.40                             16.59

EPS Growth (TTM vs Prior TTM)
-63.21%                        -35.37%

EPS Growth (Last Qtr vs Same Qtr Prior Year)
-42.86%                         -1.04%

SimonTek

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Re: Genesse & Wyoming (CIND, CERA, ISRR, TPW, CFE, IORY in Indiana)
« Reply #4 on: July 25, 2019, 02:09:01 AM »
I get nervous when a financial business buys things like this. Example, when Chrysler went bankrupt in 2008-9, the company that bought them was a hedge fund company. Didn't know anything about building cars.

INprinter

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Re: Genesse & Wyoming (CIND, CERA, ISRR, TPW, CFE, IORY in Indiana)
« Reply #5 on: July 30, 2019, 10:11:33 PM »
I was going to North Vernon, IN on Saturday via Greensburg and noticed that the tracks to the Lowe's elevator have been cut and removed across SR3. There is a sign up that says the tracks are out of service. None of the Signal lights have been removed. This might have been covered elsewhere. My apologies if so.

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Sharky1

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Re: Genesse & Wyoming (CIND, CERA, ISRR, TPW, CFE, IORY in Indiana)
« Reply #6 on: July 31, 2019, 05:05:10 PM »
I was going to North Vernon, IN on Saturday via Greensburg and noticed that the tracks to the Lowe's elevator have been cut and removed across SR3. There is a sign up that says the tracks are out of service. None of the Signal lights have been removed. This might have been covered elsewhere. My apologies if so.

INPrinter

Apologies accepted. I wish I could direct you to the thread this was covered in. Very  interesting story about ROW title confusion which only became important when the state wanted to rebuild the road and found out the title to the ROW had been mishandled and the legal owner had no interest in maintaining a crossing. I think Scraphauler was the one with the full story. A short line was formed to run the spur to Lowe's and all the track was transferred except the grade crossing. The old owner still had title to that little segment. When the state ask them about the grade crossing in regards to the road construction they told the state that they weren't even aware they owned the property and had no interest in maintaining it.  So the state just took it out.

At least that's how I remember it.
There a fine line between a 'hobby' and a 'mental illness'.

arobb00

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Re: Genesse & Wyoming (CIND, CERA, ISRR, TPW, CFE, IORY in Indiana)
« Reply #7 on: July 31, 2019, 06:22:01 PM »
Apologies accepted. I wish I could direct you to the thread this was covered in. Very  interesting story about ROW title confusion which only became important when the state wanted to rebuild the road and found out the title to the ROW had been mishandled and the legal owner had no interest in maintaining a crossing. I think Scraphauler was the one with the full story. A short line was formed to run the spur to Lowe's and all the track was transferred except the grade crossing. The old owner still had title to that little segment. When the state ask them about the grade crossing in regards to the road construction they told the state that they weren't even aware they owned the property and had no interest in maintaining it.  So the state just took it out.

At least that's how I remember it.

Here's Scraphauler's explaination:   http://indianarailroads.org/board/index.php?topic=21250.msg194148#msg194148

CIOR

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Re: Genesse & Wyoming (CIND, CERA, ISRR, TPW, CFE, IORY in Indiana)
« Reply #8 on: August 21, 2019, 01:15:05 PM »
I noticed however that they took extra time to handle the subroadbed after removal and applied a drain layer over before stone and fill with asphalt. 
Only reason this is of interest, any other cut would not be handled as such. 

Makes you feel like they are treating this differently than other removals.