FTAI Infrastructure Inc. announced an agreement to acquire The Wheeling Corporation, owner of The Wheeling & Lake Erie Railway Company (W&LE), for a cash consideration of $1.05 billion. The W&LE is a Class II regional freight railroad operating over 1,000 miles of track across Ohio, Pennsylvania, West Virginia, and Maryland, connecting to FTAI's Transtar operations.
This acquisition is a key strategic move to expand FTAI's freight rail platform, adding scale, diversification, and network reach. Management expects the combined Transtar and W&LE business to generate approximately $200 million of annual Adjusted EBITDA by the end of 2026, driven by identified growth opportunities and operating efficiencies.
To finance the acquisition and refinance existing debt, FTAI Infrastructure has secured commitments for $2.25 billion in total capital. This includes $1.25 billion of new debt to be issued by the company and $1 billion of preferred stock to be purchased by Ares Management funds, issued by a newly formed holding company for the combined rail business.
The transaction is anticipated to close into a voting trust in the third quarter of 2025, subject to customary closing conditions and approval by the U.S. Surface Transportation Board. Upon approval, FTAI Infrastructure expects to gain control of the W&LE, integrating it as an affiliate of Transtar.
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