Patriot Rail Corp. Completes Acquisition of Weyerhaeuser Company’s Railroads
BOCA RATON, USA, Jan 06, 2011 - Patriot Rail Corp. (“Patriot”), a privately-held short line and regional freight railroad holding company, today announced that it has completed the acquisition of the six short line railroads belonging to Weyerhaeuser Company, effective December 30, 2010. This acquisition, the largest for Patriot to date, brings to 13 the number of short line railroads currently owned by Patriot Rail.
“We look forward to growing the business on the rail lines through innovative and competitive service offerings to existing and new customers.”
The six Weyerhaeuser railroads operate over approximately 160 miles of track in four states, employ 88 people and handle approximately 60,000 carloads of freight annually. The railroads primarily serve Weyerhaeuser and International Paper mills and a number of third-party customers. Major commodities hauled include wood and paper products, chemicals, industrial waste, minerals and agricultural products. Each of the railroads interchange traffic with multiple Class I carriers and other short line railroads.
The six railroads are listed below:
* the DeQueen and Eastern Railroad (DQE) operates over 50 miles in southwest Arkansas;
* the Texas, Oklahoma & Eastern Railroad (TOE) operates over 41 miles in southeast Oklahoma and connects directly with the DQE at the Oklahoma/Arkansas border;
* the Columbia & Cowlitz Railway (CLC) operates over 14 route miles in southwest Washington;
* the Patriot Woods Railroad (PAW) operates over 23 route miles in southwest Washington and connects directly to the CLC;
* the Golden Triangle Railroad (GTRA) operates over 9.5 route miles in central Mississippi; and
* the Mississippi & Skuna Valley Railroad (MSV) owns 22 route miles in Mississippi.
In addition to the rail lines and other track assets, the acquisition also includes 28 locomotives, over 300 railcars, 2,500 leased railcars, 50 motor vehicles, right-of-way real estate, general office buildings, maintenance of way equipment, locomotive shops, rail car repair shops, a wheel shop, rail yards and office and shop equipment.
“This transaction represents the acquisition of very attractive railroads with strong cash flow, a dedicated workforce, a well maintained track infrastructure, a highly stable customer base, and appealing growth opportunities,” said Gary O. Marino, Chairman, President & CEO of Patriot Rail. “We look forward to growing the business on the rail lines through innovative and competitive service offerings to existing and new customers.”
“We are pleased to complete the transaction with Patriot and look forward to working with them to continue receiving dependable rail service to our mills,” said Daniel S. Fulton, Weyerhaeuser President and Chief Executive Officer.
Financing for the transaction was provided by Fifth Third Bank, Prudential Capital Group and Prudential Capital Partners. Oppenheimer & Co. acted as financial advisor and Greenberg Traurig, P.A. acted as legal advisor to Patriot in connection with the acquisition.
Patriot Rail Corp. is a short line and regional freight railroad holding company based in Boca Raton, Florida. The Company owns and operates 13 short line freight railroads comprising approximately 500 total rail miles in 12 states. For more information on Patriot Rail Corp. visit us at www.patriotrail.com.