Genesee & Wyoming Australia (GWA) has completed its $1.14 billion acquisition of Glencore Rail (GRail) in the New South Wales Hunter Valley.
Glencore sold its GRail assets as part of its plans to cut down debt, with GWA beating bids from both Aurizon and Pacific National.
The sale includes nine train sets – 30 locomotives and 894 wagons – as well as a contract between GWA and Glencore Coal (GC) to exclusively haul all coal produced at GC’s existing mines in the Hunter Valley to the Port of Newcastle.
In conjunction with the sale, GWA parent company Genesee & Wyoming (G&W) also issued a 49 per cent equity stake in GWA to funds and clients managed by Macquarie Infrastructure and Real Assets (MIRA).
“The acquisition strengthens GWA’s nationwide footprint in Australia, adding a significant presence in the Hunter Valley coal supply chain and complementing GWA’s existing intermodal, agricultural and mining business in South Australia and the Northern Territory,” GWA said.
The deal is expected to add $100 million of 2017 EBITDA, which is expected to grow to $150 million in the medium term.