OmniTRAX Affiliate to Acquire Winchester & Western Railroad
DENVER--(BUSINESS WIRE)--Jul 26, 2019--
A managed affiliate of OmniTRAX, Inc. (OmniTRAX), one of the largest privately held rail-centric transportation and logistics service companies in North America, and an affiliate of The Broe Group, has entered into a definitive agreement to acquire the 101 year-old Winchester & Western Railroad (WW) from Covia Holdings Corporation (NYSE:CVIA). The $105 million acquisition is expected to close during the third quarter of 2019 and is subject to customary closing conditions, including Surface Transportation Board review. WW operates in Maryland, New Jersey, West Virginia and Virginia.
The acquisition expands the OmniTRAX-managed short line portfolio into key new distribution locations in multiple east coast markets, providing OmniTRAX’s customers access to 100 million people within a day’s transit.
By becoming part of the OmniTRAX family, WW gains the support and leadership guidance that will allow it to implement improved operational strategies with the speed and agility that a logistics company can deliver. OmniTRAX’s deployment of Precision Scheduled Short Line Railroading – a unique strategy that uses point-to-point delivery methods to lower operating costs – will strengthen WW’s performance, service, growth and safety.
“OmniTRAX has been growing at an average annual rate of 20+ percent for the past five years and the acquisition of this strategic distribution hub is a deliberate step toward enhancing the continued growth and strength of our thriving network,” said Kevin Shuba, OmniTRAX CEO. “Our expansion into these dynamic markets with a diverse, established customer base and strong regional economic partners offers tremendous growth potential and we have high expectations for economic impact and job production.”
About OmniTRAX, Inc.
As one of North America’s largest private railroad and transportation management companies, OmniTRAX’s core capabilities range from providing transportation and supply chain management services to railroad and port companies, to providing intermodal and industrial switching operations to railroads, ports and a diverse group of industrial companies. Through its affiliation with The Broe Group and its portfolio of managed companies, OmniTRAX also has the unique capability of offering specialized industrial development and real estate solutions, both on and off the rail network managed by OmniTRAX. More information is available at omnitrax.com.
About The Broe Group
Based in Denver, The Broe Group and its affiliates form a privately-owned, multi-billion-dollar real estate, transportation, energy and investment organization with assets owned and managed across North America. Together, Broe managed companies employ more than 1,000 people and support employment of thousands of others through operations such as its Great Western Industrial Park in Northern Colorado. Its transportation affiliate, OmniTRAX, Inc., is one of North America’s largest private railroad and transportation management companies specializing in: management services, railroad and port services, intermodal solutions and industrial switching operations. Its energy affiliates include Great Western Oil & Gas Company, the largest private operator in the third most prolific U.S. basin. Broe Real Estate Group acquires, develops and manages office and industrial properties, medical office buildings and multi-family communities across the country, including premier assets in many of the most desirable markets. The Broe Group also has multiple investment affiliates, including Three Leaf Ventures, which is focused on innovative healthcare technology start-ups. For more information, visit broe.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190726005087/en/
CONTACT: Ronald Margulis
KEYWORD: COLORADO UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY RAIL TRANSPORT TRANSPORTATION LOGISTICS/SUPPLY CHAIN MANAGEMENT OTHER CONSTRUCTION & PROPERTY TRAVEL
SOURCE: OmniTRAX, Inc.
Copyright Business Wire 2019.
PUB: 07/26/2019 07:00 AM/DISC: 07/26/2019 07:00 AM