Fortress’s RailAmerica Rises After Acquisitions: Atlanta Mover

RailAmerica Inc. (RA), the short-line railroad operator controlled by Fortress Investment Group LLC (FIG), rose the most in almost four months after announcing two acquisitions.

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 reporters on this story: Ed Dufner in Dallas at; Libby Sallaberry in New York at

To contact the editor responsible for this story: Ed Dufner at

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