RailAmerica finalizes deal for Michigan railroad
Shortline railroad holding company RailAmerica reported it has completed the acquisition of the Central Michigan Railway Co. for $25.3 million.
RailAmerica, which reported the deal in November, paid cash for the Bay City, Mich.-based railroad using a combination of its own reserves and money from a revolving line of credit.
The Central Michigan Railway operates 100 miles of rail line between Midland and Durand, Mich., providing service to the Saginaw, Mich. area. It generated about $11 million in revenue last year. Commodities moved on the Central Michigan include chemicals, coal, agricultural commodities, sugar beets, fertilizer and cement. The railroad also has cross-dock, warehouse and transload facilities.
With the acquisition, RailAmerica now owns six railroad properties in Michigan. The companies operate more than 500 miles of track and move 60,000 freight carloads per year.