7061 East Pleasant Valley Road, Independence, Ohio 44131 • (216) 241-2630 / Fax: (216) 241-6516

News and Issues
User Info

Genesee & Wyoming to acquire Maryland Midland Railway

(Genesee & Wyoming issued the following on October 22.)

GREENWICH, Conn. — Genesee & Wyoming Inc. (GWI) announced today that it has entered into an agreement to acquire 87.4% of Maryland Midland Railway, Inc. (Maryland Midland) for cash consideration of approximately $29.1 million, with adjustments for working capital at the time of closing. The transaction is subject to customary closing conditions, including receipt of regulatory approvals and Maryland Midland stockholder approval. GWI has secured voting agreements from the requisite number of Maryland Midland stockholders needed to approve the transaction, which is expected to close during the fourth quarter of 2007.

Headquartered 50 miles northwest of Baltimore, the Maryland Midland operates over 63 miles of track between Glyndon and Highfield, Maryland (near the Pennsylvania border), and between Walkersville and Taneytown, Maryland. Maryland Midland has 30 employees, 10 locomotives and is an interline carrier with CSX.

The Maryland Midland carries approximately 16,000 carloads per year, with roughly 90% of its traffic in the cement and stone industries. The railroad's largest customer is Lehigh Cement's recently upgraded facility in Union Bridge, Maryland. Lehigh is currently the largest stockholder of the railroad and will retain its 12.6% ownership.

The Maryland Midland is located approximately 40 miles from GWI's York Railway in southeastern Pennsylvania. GWI expects the acquisition will be immediately accretive to its earnings per share.

"The Maryland Midland is an excellent short line railroad and a good geographic fit with our York operations," said GWI Chief Executive Officer John C. Hellmann. "This proximity lends itself to efficiencies that make the financial combination attractive. The Maryland Midland's customer base is highly competitive in the U.S. cement and aggregates market, and we look forward to providing quality customer service for the long term."

GWI is a leading owner and operator of short line and regional freight railroads in the United States, Canada and Australia and owns a minority interest in a railroad in Bolivia. Operations currently consist of 47 railroads organized in nine regions, including service at 12 U.S. ports, contract coal loading and industrial switching. GWI operates more than 5,700 miles of owned and leased track and approximately 3,500 additional miles under track access arrangements.

Monday, October 22, 2007

Like us on Facebook at

Sign up for BLET News Flash Alerts

© 1997-2019 Brotherhood of Locomotive Engineers and Trainmen


Decertification Helpline
(216) 694-0240

Sign up for BLET
News Flash Alerts


Dow transports dragged down by CSX and Norfolk Southern stocks
CSX’s stock drops after Deutsche Bank downgrades, cuts price target
Imperial Oil ramping up crude by rail shipments after pipeline outage
Amtrak celebrates record 2019 fiscal year performance
Bullet train for Cascadia urged on despite electorate’s anti-tax mood
Editorial: CA Governor Newsom is right in saying he will oppose any raid on high-speed rail funding
Money sought to study bringing Amtrak’s Southwest Chief to Colorado Springs
NJ Transit needs infusion of cash to get back on track, former lawmaker says
DOT announces $900 million investment in American infrastructure
Operation Lifesaver launches redesigned website
RRB Q&A: Credit for military service under the Railroad Retirement Act
Get the latest labor news from the Teamsters

More Headlines