Grupo Mexico to acquire FEC

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FXEastCoast
An artist's mock-up shows a Ferromex locomotive leading a Florida East Coast train at St. Augustine, Fla.
Photo illustration by Drew Halverson
JACKSONVILLE, Fla. – GMéxico Transportes S.A. de C.V., the transportation business unit of Grupo México, and the Florida East Coast Railway Holdings Corp. have entered into a purchase agreement to acquire FEC in an all cash transaction for an undisclosed value.

FEC President and CEO Jim Hertwig says, "The FEC team looks forward to working with [GMéxico Transportes] to grow our business, execute our key strategic initiatives, and take advantage of new opportunities." The railroad, now owned by affiliates of Fortress Investment Group LLC, serves a diverse mix of intermodal, aggregate, auto, chemicals, metals and lumber customers, handling about 550,000 loads per year.

The sale does not affect All Aboard Florida or its Brightline passenger service, which remains with Fortress.

Grupo México subsidiary Ferromex operates more than 6,200 miles track covering major industrial and commercial zones in the country. It serves eight seaports and six border rail crossings, handling more than 1.4 million loads per year.

"The acquisition of FEC is an important strategic addition to our North American transportation service offering. Our acquisition of the FEC will significantly enhance the scope, scale and diversification of our service," Alfredo Casar, president and CEO of GMéxico Transportes, says. "We are excited to welcome FEC to our transportation team as we work together to provide safe, reliable and efficient rail and trucking services to our customers."

New York-based Fortress, a subsidiary of Japan's SoftBank Group Corp., also owns the Central Maine & Quebec Railway, which is not included in this deal.

For more information on Florida East Coast and the Brightline passenger startup, see the January 2015 and November 2016 issues of Trains.

NEWSWIRETrains News Wire

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