PDA

View Full Version : RailAmerica for sale?


Nahant
05-17-2012, 10:13 PM
I got several e-mails today in regards to RailAmerica being for sale. Does anyone know for sure if it is or isn't? This was the best article sent to me about it:
http://www.easternrailroadnews.com/2012/05/16/railamerica-is-reportedly-for-sale/

Thanks,
Matt

ShortlinesUSA
05-18-2012, 02:59 PM
The story is attributed to Fred Frailey at Trains, who is pretty well tied in with the industry. Kevin also has good regional contacts with RailAmerica in the Northeast, so I would consider the story as credible.

I didn't expect Fortress Investments to hang onto RailAmerica for the long term. What I did expect was for them to come in and do a "Wall Street style" house cleaning, and really whip the company into shape. So far, that doesn't seem to have been accomplished. I expected them to sell off some marginal producing lines to smaller holding companies or local interests and pay down the pile of debt accumulated during the Marino years, but all the financials I've seen (and not saying I know a ton about those, but the debt still seems to be significant, and this has been verified by a friend who is a financial analyst in the transportation sector) don't seem to reflect much has been done in that respect.

If Fortress can pull off a sale, the vibe I get is it's more of a "cut and run" situation, rather than selling a company they've turned around for a premium.

ShortlinesUSA
05-23-2012, 02:05 PM
Here you go, Matt-- this is a bit more solid than "Word from reliable sources." :-)

http://www.marketwatch.com/story/railamerica-inc-announces-review-of-strategic-alternatives-2012-05-22

Nahant
05-24-2012, 04:28 PM
Thank you!

Matt