Feb. 2 (Bloomberg) -- RailAmerica Inc., the short-line railroad operator controlled by Fortress Investment Group LLC, rose 13 percent today, the most since its 2009 initial public offering, 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 to $17.24 at the close in New York, for the biggest gain since the company’s October 2009 IPO. Fortress, based in New York, holds a 59 percent stake in RailAmerica, according to data compiled by Bloomberg.
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