Grupo México’s transportation business unit GMéxico Transportes (GMXT) has signed a $2.1bn agreement to acquire Florida East Coast Railway (FEC).
Set to position GMXT as a railroad owner in the US, the acquisition will also add a key Florida rail line to the company’s existing operations in Texas.
GMXT president and CEO Alfredo Casar said: “The acquisition of FEC is an important strategic addition to our North American transportation service offering.
“Our acquisition of the FEC will significantly enhance the scope, scale and diversification of our service.”
GMXT has more than 10,000km of rail track covering major industrial and commercial zones in the country. The tracks also link to international transportation networks through eight seaports and six border crossings.
Our acquisition of the FEC will significantly enhance the scope, scale and diversification of our service.”
Owned by funds managed by affiliates of Fortress Investment Group, FEC provides rail service along the east coast of Florida.
It is also the exclusive provider of rail service to South Florida’s ports, including Port Miami, Port Everglades, and the Port of Palm Beach.
Offering service across 351 miles of owned track, FEC is capable of serving 70% of the US population.
FEC president and CEO Jim Hertwig said: “The FEC team looks forward to working with GMXT to grow our business, execute our key strategic initiatives and take advantage of new opportunities.”
The acquisition is set to close subject to satisfaction of closing conditions including the receipt of applicable government approvals.
Source: Railway Technology