Fortress Investment Group to acquire RailAmerica in $1.1bn transactionNew York-headquartered Fortress Investment Group has agreed to acquire RailAmerica for $16.35 per share in an all-cash transaction. The total value of the transaction, including the refinancing of RailAmerica's existing debt, is approximately $1.1bn.
The merger agreement was unanimously approved by RailAmerica's board of directors.
RailAmerica is a short line and regional rail service provider with 42 railroads operating approximately 7,800 miles in the US and Canada.
Wesley R Edens, CEO of Fortress, said, 'Fortress is excited to have the opportunity to invest in the North American rail industry. RailAmerica has assembled a well diversified portfolio of short line railroads throughout North America and we look forward to working with the management team to grow the company.'
Fortress Investment Group is an alternative asset manager with approximately $26bn in assets under management.
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