Genesee and Wyoming Acquires Georgia Southwestern Railroad

PRNewswire-FirstCall/ -- Genesee & Wyoming Inc. (GWI) (NYSE:GWR) announced today that it has acquired the Georgia Southwestern Railroad, Inc. (Georgia Southwestern) for cash consideration of approximately $16.5 million and the assumption of $5.4 million in debt, subject to adjustment for final working capital.

Headquartered in Dawson, Ga., the Georgia Southwestern operates over 220 miles of track between (i) White Oak, Ala., and Smithville, Ga.; (ii) Cuthbert, Ga., and Bainbridge, Ga. and (iii) in and around Columbus, Ga. The Georgia Southwestern connects to GWI's Chattahoochee Industrial Railroad in Saffold, Ga., via trackage rights.

The Georgia Southwestern has 20 employees and 10 locomotives and carries approximately 10,000 carloads per year, primarily serving customers in the peanut, general agriculture, aggregate, animal feed and ethanol storage markets. It interchanges with Norfolk Southern, CSXT and the Heart of Georgia Railroad.

The Georgia Southwestern will be managed as part of GWI's Southern Region under the leadership of GWI Senior Vice President Gerald T. Gates. GWI expects the acquisition will be immediately accretive to its earnings per share.

GWI owns and operates short line and regional freight railroads in the United States, Canada, Australia and the Netherlands and owns a minority interest in a railroad in Bolivia. Operations currently include 63 railroads organized in nine regions, with more than 6,700 miles of owned and leased track and approximately 3,000 additional miles under track access arrangements. GWI provides rail service at 16 ports in North America and Europe and performs contract coal loading and railcar switching for industrial customers.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Genesee & Wyoming's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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