Watco Acquires GLC: Michigan Rail Expansion, $3.7M Investment

Introduction

On August 29, the Surface Transportation Board (STB) authorized Watco Holdings Inc. to acquire control of Great Lakes Central Railroad Inc. (GLC), a Michigan-based short line, pending certain conditions. The acquisition will incorporate GLC’s 379 miles of rail line into Watco’s existing network.

Acquisition Approval

The STB’s decision allows Watco Holdings Inc. to take control of Great Lakes Central Railroad Inc. The STB’s decision is contingent on specific conditions being met. This acquisition expands Watco’s operations within the United States.

Background and Timeline

Watco announced its intent to acquire GLC in early March. The Surface Transportation Board reviewed the petition for exemption filed by Watco on March 6. Following a request for additional information, Watco supplemented its petition with details regarding the transaction’s potential effects on competition.

Watco’s Commitments

Watco has committed to improving service and modernizing GLC’s infrastructure. Watco has stated that the acquisition will create routing efficiencies between GLC and Ann Arbor Railroad (AA). GLC will also gain access to Watco’s marketing team. Furthermore, Watco plans to invest $3.7 million in GLC’s network, according to STB officials.

Financial Details

The financial terms of the acquisition were not disclosed.

Conclusion

The Surface Transportation Board approved Watco Holdings Inc.’s acquisition of Great Lakes Central Railroad Inc., a short line operating 379 miles of track in Michigan. Watco plans service improvements, infrastructure modernization, routing efficiencies, and a $3.7 million investment in the GLC network.

Company Summary

Watco Holdings Inc.: Operates 1 regional and 43 short lines in the United States.

Great Lakes Central Railroad Inc. (GLC): A short line railroad operating 379 miles of rail line in Michigan.

Ann Arbor Railroad (AA): A railroad that will have streamlined routing efficiencies with GLC.