CSX has announced that it has completed the acquisition of Pan Am Railways, six weeks after the Class 1 railway received regulatory approval from the Surface Transportation Board (STB). Transaction terms were not disclosed.
Goldman Sachs acted as financial advisor; Steptoe & Johnson as regulatory counsel; and Davis Polk & Wardwell as transactional counsel.
On April 14 all five members of the STB approved CSX’s proposal to acquire Pan Am and its short line railway subsidiaries, with the transaction becoming effective on May 14.
Pan Am expands CSX’s reach in Connecticut, New York and Massachusetts, while adding Vermont, New Hampshire and Maine to its existing 23-state network. Headquartered in North Billerica, Massachusetts, Pan Am has owned and operated a 1930km network across New England, with a partial interest in the 965km Pan Am Southern jointly owned with Norfolk Southern.
“We are excited to welcome Pan Am’s experienced railroaders into the CSX family and look forward to the improvements we will make together to this important rail network in New England, bringing benefits to all users of rail transportation in the northeast region,” says CSX president and CEO, Mr James M Foote. “This acquisition demonstrates CSX’s growth strategy through efficient and reliable freight service and will provide sustainable and competitive transportation solutions to New England and beyond.”