RailAmerica, the U.S. railroad shortline operator, announced it has entered into a merger agreement with an affiliate of Fortress Investment Group L.L.C. under which the asset management firm will acquire the holding company for $16.35 in cash for each common share.
The $1.1-billion deal which includes refinancing RailAmerica's existing debt is scheduled to close in the first quarter pending regulatory approvals. RailAmerica will become a privately held company after the transaction.
RailAmerica owns and operates 42 U.S. and Canadian regional railroads and shortlines.