The company said in statements late yesterday it agreed to buy regional carrier Marquette Rail LLC for $40 million and will pay $18 million for a 70 percent stake in Myles Group’s Wellsboro & Corning Railroad and Industrial Waste Group.
“RA’s two new acquisitions are a positive,” positioning the carrier to benefit from Wellsboro & Corning traffic supporting the Marcellus Shale natural gas industry, Jason Seidl, a Dahlman Rose & Co. analyst in New York, said today in a note to investors. He recommends holding RailAmerica shares.
RailAmerica, based in Jacksonville, Florida, climbed 9.5 percent to $16.64 at 9:51 a.m. in New York, the biggest intraday advance since Oct. 4. Fortress, based in New York, holds a 59 percent stake in RailAmerica, according to data compiled by Bloomberg.
To contact the editor responsible for this story: Ed Dufner at firstname.lastname@example.org