Florida East Coast Railway Holdings Corp. will be acquired by GMéxico Transportes S.A. de C.V. for $2.1 billion.
Florida East Coast Railway Holdings Corp. (FEC) will be acquired by GMéxico Transportes S.A. de C.V. (“GMXT”), the transportation business unit of Grupo México, in an all cash transaction.
Grupo México, which operates Mexico’s Ferromex and Ferrosur railways through GMXT, agreed to pay $2.1 billion for FEC, the Wall Street Journal reported. The company will use $350 million in cash and take on $1.75 billion in debt to finance the transaction.
Grupo México said the acquisition will complement its operations in Texas and increase the reach and scale of its North American operations, according to the WSJ.
FEC said the acquisition is expected to close subject to satisfaction of closing conditions, including the receipt of applicable government approvals.
Jacksonville, Fla.-based FEC is owned by funds managed by affiliates of Fortress Investment Group LLC. FEC has 351 miles of owned track between Miami and Jacksonville, where it interchanges with the Norfolk Southern and CSX railroads. FEC is also the exclusive rail provider to PortMiami, Port Everglades and the Port of Palm Beach.
GMXT operates over 6,200 miles of track covering major industrial and commercial zones in Mexico. The company connects to international transportation networks through eight seaports and six border crossings, handling more than 1.4 million loads per year.
BBVA Bancomer, S.A. and Credit Suisse served as financial advisors to GMXT, while Dechert and Galicia served as legal advisors.
Meanwhile, Barclays and Morgan Stanley & Co. LLC served as financial advisors to FEC, while Cravath, Swaine & Moore, along with Sidley Austin served as legal advisors.
GMXT to purchase FEC Railway
