The P&W owns more than 163 miles of track in Rhode Island, Massachusetts, and Connecticut and has operating rights on more than 350 miles of additional track, including exclusive freight access on the Northeast Corridor between Providence, R.I., and Queens, N.Y., in New York City.
According to a news release, the G&W will purchase all outstanding P&W stock for $25 per share. With shareholder approval, the deal is expected to go through during the fourth quarter of 2016. The merger will also have to be approved by the Surface Transportation Board.
The acquisition of the P&W further cements G&W’s dominance in the region. Jack Hellmann, G&W president and CEO, says the P&W will strategically fit with his company’s other holdings in the area, including the New England Central and Connecticut Southern.
“Following anticipated STB approval of the acquisition, our connectivity with the P&W enables us to realize substantial immediate cost savings, to share and optimize the utilization of equipment and other assets, and to unlock significant new customer opportunities across sister G&W railroads as well as connecting partners at two Canadian Class I Railroads, two U.S. Class I Railroads and two regional railroads,” Hellmann says. “Our acquisition of the P&W will ultimately enhance the efficiency and customer service of rail in New England.”
The P&W will be managed as part of G&W’s Northeast Region, led by Senior Vice President Dave Ebbrecht.
Officials with the P&W say the acquisition will ensure quality service for its customers for years to come.
“Becoming part of the Genesee & Wyoming family with its record of emphasis on safety and investment in its rail infrastructure ensures that our company will continue to provide the quality of service which our customers and the communities we serve have enjoyed over the 40 plus years since we re-commenced independent operations while at the same time continuing and improving on our programs to promote employee and community,” says P&W CEO and Chairman Robert H. Eder.
The P&W has deep roots in New England. The railroad dates back to the 1840s when it ran through Massachusetts and Rhode Island. In 1892, the New Haven agreed to lease the P&W for 99 years. Four years after the NH was absorbed into Penn Central, the P&W regained its independence.
UPDATE: Full story and quotes from Genesee & Wyoming and Providence & Worcester. Aug. 15, 2016, 10:05 a.m. Central Daylight Time.
Now why would G&W do this?
Don’t count on it. One engine became two, then four then the balance of the Utah Railway. When those big MK5000’s went from Gray with A Red Band runni8ng down the flanks to Orange Yellow and black, I about cried. Get ready for the same on the P&W…
Another great paint scheme will bite the dust. Just like the Utah Railway’s gray and red that “was not going to be changed”. Now like everyone else we have pumpkin orange with yellow and black trim. YUCK!
Genesee and Wyoming is a good company. I’m not sure what you folks are complaining about.
Sad! Unfortunately the way business operates these days. Another small independent flag falls.
Does that spell the end of the GE’s?
Mr. Smith, The commuter service between Worcester and Providence was never going to happen any way. Now it is probably totally dead. You should worry more about the P & W’s own excursion program and its fleet of restored cars.
G&W’s record of repainting equipment is spotty. There are units of theirs in Kyle purple, Conrail blue, UP yellow and more running around. The P&W red and black will be around for a while, just not where you’d expect to see them.
The commuter service between Worcester and Providence? Dead. Very dead.
Well, there goes the red and black P&W livery.
I wonder how this will affect the plans to start commuter service between Worcester and Providence.
I might be colorblind, but the P&W livery always looked more brown than black, and if the other color is rightly called red, it’s a pretty orange shade of red.
Oh my gosh…..please don’t paint it orange.
The PR highlights savings from connected operaations, better service to customers and the potential to bring more customers onboard. All of this should mean a better bottom line for G&W. Will they share some of this with employees and/or pass savings along to customers, or will they just bankroll future takeovers?
G&W President and CEO Jack Hellmann is quoted above citing the Class I and regional connections which already exist; if anything, this acquisition and the consolidation of their operations in New England should be a plus for all concerned. Regarding the Mass. Bay RRE excursion trips: It seems to me that G&W has partnered with Iowa Pacific, and others, for excursions on its elsewhere in the U.S. If the folks at G&W are as savvy as I think they are, they already recognize the value of railfan support, and would not do anything rash so as to alienate us. “G&W” may be substituted for “G&W” on the nose and flanks of locomotives, but I suspect that we will be seeing the P&W livery around for awhile.
re the comment “You should worry more about the P & W’s own excursion program and its fleet of restored cars.” That was my first thought. They have had a great relationship with Mass Bay RRE over the years. I just sent away for my ticket for the October 29 excursion. I wonder if this will be the last one.
It would have been much nicer to hear about G&W buying the remains of the B&M and MEC and totally removing Guilford (PanAm) from existence. Now will NS connect to this new system without Guilford controlling the rates to Rotterdam Jct. and Schenectady?