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RailAmerica agrees to be bought in $1.1B
deal
Wednesday November 15, 4:40 pm ET
Another of South Florida's publicly traded companies is planning to go
private. This time, it's RailAmerica.The Boca Raton-based short line and
regional railroad operator said it has agreed for an affiliate of Fortress
Investment Group LLC to buy it for about $1.1 billion, including a debt
refinancing. The deal calls for each RailAmerica (NYSE: RRA - News) shareholder
to
receive $16.35 in cash per common share.That's a 32 percent premium on the NYSE
closing price of $12.38 on Tuesday and a 49 percent premium over the average
closing price for the last 60 trading days.
"We view the transaction with Fortress as the best alternative for
RailAmerica's shareholders and are excited about partnering with
Fortress going forward," RailAmerica Chief Executive Officer Charles
Swinburn said. Fortress CEO Wesley R. Edens said his company is excited to have
the opportunity to invest in the North American rail industry."RailAmerica
has assembled a well diversified portfolio of short line railroads throughout
North America and we look forward to working with the management team to grow
the company," he said. Morgan Stanley & Co. was RailAmerica's
financial adviser. The company's board has already unanimously approved the
merger agreement. Closing is subject to approvals from regulators, from
holders of two-thirds of RailAmerica's outstanding common stock and other
customary conditions. RailAmerica and Fortress said they expect to close their
deal, making RailAmerica a privately held company, during the first quarter of
2007.
Published November 15, 2006 by the South Florida Business Journal
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