Shareholders of Providence and Worcester Railroad Company (P&W) voted to approve the proposed acquisition of PWRR by Genesee & Wyoming Inc. (GWI).
In mid-August 2016, GWI revealed plans to acquire P&W for $126 million. Subject to the terms of the Merger Agreement, P&W will merge with Pullman Acquisition Sub Inc., a wholly-owned subsidiary of GWI, with P&W surviving the merger and becoming a wholly-owned subsidiary of GWI.
P&W shareholders also approved an advisory proposal regarding the compensation that may be paid or become payable to P&W's named executive officers in connection with the merger.
Following the special meeting of P&W shareholders, P&W Chairman of the Board and CEO Robert H. Eder said, "We are very grateful to our shareholders for their overwhelming support of this transaction. With today's vote, we move one step closer to completing the transaction with Genesee & Wyoming, to the benefit of our shareholders, employees, customers, and the communities we serve."
The merger is scheduled to close on or around November 1, 2016, subject to the satisfaction of the remaining customary closing conditions.
Following the approval from the Surface Transportation Board, P&W would be managed as part of GWI's Northeast Region. GWI officials say the addition of P&W to the company's inhabitance along the east coast strengthens GWI's ability to serve Class 1 partners and customers in New England, which GWI says is a highly competitive rail market focused on quick, efficient and safe rail service.