The owner of several Hoosier short-line railroads will soon be under new ownership. Illinois-based Pioneer Railcorp has announced an agreement to be acquired by BRX Transportation Holdings LLC.
Pioneer Railcorp owns more than a dozen rail lines, some of which are either located in or pass through portions of Indiana. They include:
- Elkhart & Western Railroad
- Indiana Southwestern Railway (Evansville)
- Kendallville Terminal Railway
- Michigan Southern Railroad (includes Elkhart)
- Napoleon, Defiance & Western Railway (includes Fort Wayne)
BRX is a newly-formed entity between Brookhaven Rail Partners, an affiliate of Colorado-based Brookhaven Capital Partners, and Related Infrastructure in New York City. Per the terms of the agreement, BRX will acquire Pioneer for $18.81 per share in cash, though a total value of the acquisition was not provided.
"We are excited to partner with Related Infrastructure and to have worked with Pioneer’s management and board on a transaction that brings great value to its shareholders, its customers, and the communities it serves," said Alex Yeros, principal of Brookhaven. "Pioneer fits perfectly with Brookhaven’s philosophy of identifying opportunities where our hands-on management expertise, proprietary value creation strategies, and deep industry relationships provide us with a competitive advantage and the ability to create value."
The acquisition remains subject to approval by Pioneer’s shareholders, the Surface Transportation Board and various closing conditions. The deal is expected to close in the third quarter.