Genesee & Wyoming Inc. entered into a definitive agreement to acquire west end operations from Dakota, Minnesota & Eastern Railroad Corporation for approximately $210 million.
The asset sale is expected to close by mid-2014. For Canadian Pacific Railway Limited, the sale is cash positive, anticipated to result in a net after-tax write down of approximately $240 million and will not have a material effect on anticipated future earnings. For Genesee & Wyoming Inc., the transaction is expected to generate annual revenues of approximately $65 million and be immediately accretive to book and cash earnings per share in 2014. Evercore Partners Inc. acted as the financial advisor to Canadian Pacific Railway Limited. Michael Williams of G&W Corporate Communications managed public relations for Canadian Pacific. Adeeb R. Fadil, Misan O. Ikomi, Jasmine Kaufman, Jamin R. Koslowe, Noreen Lavan, Gary B. Mandel, Krista B. McManus, Sophie A. Staples, and Anthony F. Vernace of Simpson Thacher acted as legal advisor to Genesee & Wyoming. Steve Quinlivan, Jim Bertrand, David Ezrilov, David Rifkind, Karl Hansen, Rob Devolve and Eric Galatz of Stinson Leonard Street LLP acted as legal advisors to Canadian Pacific.