GREENWICH, Conn. — Genesee & Wyoming Inc., which owns and operates regional freight railroads, has agreed to buy the Utah Railway Company, from Mueller Industries, Inc., for $54 million, GWI announced.
Utah Railway, a short line that operates from Ogden, Utah to Grand Junction, Colo., consists primarily of coal transport business and switching services. It generated about $24 million in revenue, $6.6 million in EBIT (earnings before interest and taxes), and $7.6 million of EBITDA (earnings before interest, taxes, depreciation and amortization) over the past twelve months.
James Davis, currently vice president of field operations of GWI’s Rail Link subsidiary, was appointed general manager of the Utah region. The acquisition is expected to be completed by the end of the third quarter.
Founded in 1912, Utah Railway operates 45 miles of owned track and 378 miles under track access agreements. These trackage rights include agreements with Union Pacific from Provo, Utah to Grand Junction, and with Burlington Northern Santa Fe from Provo to Ogden. The railroad also serves industrial customers in Salt Lake City through trackage rights from the Utah Transit Authority.
Greenwich, Conn.-based GWI operates short line and regional freight railroads in the U.S., Canada, Mexico, Australia and Bolivia, and provides freight car switching and related services to industrial customers.