Purchase of Indiana Rail Operations Nearing Completion
PEORIA, Illinois - Several short-line railroads in Indiana are now one step closer to new ownership. Shareholders of Illinois-based Pioneer Railcorp have approved the previously -announced merger with BRX Transportation Holdings LLC. Pioneer is the parent company of 15 short-line rail operations throughout the Midwest and southeast United States. Five of those rail lines serve Indiana.
BRX is a Colorado-based company. It will acquire Pioneer for $18.81 per share in cash, though a total value of the acquisition was not provided.
Upon closing of the transaction, Pioneer will become a wholly-owned subsidiary of BRX
The company says Pioneer’s Class A common stock will cease trading on the OTC markets.
Pioneer serves a variety of industries including agriculture companies, aggregate, plastics, and the auto sector. The short lines connect with the major rail carriers to move goods and commodities across the country.
The Indiana-connected railways affected by the deal include:
- Elkhart & Western Railroad
- Indiana Southwestern Railway (Evansville)
- Kendallville Terminal Railway
- Michigan Southern Railroad (includes Elkhart)
- Napoleon, Defiance & Western Railway (includes Fort Wayne)