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Railroad goes public

Genesee & Wyoming Inc. plans to go public.
Founded in 1899 as the Genesee & Wyoming Railroad to haul salt over 14 miles of track in Livingston County, the firm now is headquartered in Greenwich, Conn., and operates in several states.
A June 7 filing with the federal Securities and Exchange Commission says G&W wants to sell 2.5 million shares on the NASDAQ exchange.

Railroad goes public

Genesee & Wyoming Inc. plans to go public.
Founded in 1899 as the Genesee & Wyoming Railroad to haul salt over 14 miles of track in Livingston County, the firm now is headquartered in Greenwich, Conn., and operates in several states.
A June 7 filing with the federal Securities and Exchange Commission says G&W wants to sell 2.5 million shares on the NASDAQ exchange. The filing assumes an opening price of $15 a share.
The initial public offering of G&W stock is projected for late this month and is underwritten by Wertheim Schroder & Co., the filing states.
G&W’s SEC filing acknowledges that the 1994 collapse and flooding of the Akzo mine in Retsof was a serious blow to its business. The mine’s owner, Akzo Nobel Inc., until recently had planned to develop a new mine at another Livingston County site, but dropped those plans a month ago.
According to the filing, the railroad will continue to operate in this area, serving a salt distribution center at the site of the collapsed mine in Retsof.
For much of the company’s history Rochester-area salt hauling was its only business. In 1977 Mortimer Fuller III, G&W Inc.’s present chairman, bought the company and started diversifying to other geographical areas, concentrating on contracts to industries to which the railroad would be the sole supplier.
G&W now carries freight over 1,500 miles of track in several states, and serves 280 customers, the filing states.
According to the SEC document, G&W plans to continue the strategy, pursuing further railroad acquisitions.
In February, the company formed the Illinois & Midland Railroad, purchasing rolling stock and track from the Arthur T. Walker Estate Corp., the filing states.
In late 1995 it acquired rail lines in Pennsylvania known as the Pittsburgh and Shawmut Railroad, a move the filing says will strengthen the G&W’s Western New York business.
According to financial statements included in G&W’s SEC filings, the firm had revenues of $73 million and earned $6 million last year.
In 1993–the last year in which the Retsof mine was fully operational–Akzo accounted for 15.2 percent of the railroad’s revenues, providing $5.2 million.
In 1994, Akzo revenues dropped to $2.8 million. Last year, they fell to $1.9 million, the filing states.

RBJ Daily 6-27-96

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