Genesee to Acquire Fortress’s RailAmerica for $1.39 Billion

Genesee & Wyoming Inc. agreed to purchase RailAmerica Inc., the carrier controlled by Fortress Investment Group LLC, for $1.39 billion to combine North America’s two largest short-line and regional rail operators.

Genesee, which will pay $27.50 a share cash for RailAmerica, plans to fund the deal and refinance existing debt with about $2 billion in new debt and $800 million of equity or equity-linked securities. It has $2.3 billion in committed debt financing from Bank of America Corp. and $800 million of committed equity financing from the Carlyle Group.