RailAmerica buys four Alcoa railroads for $77.5 million

RailAmerica buys four Alcoa railroads for $77.5 million    RailAmerica Inc., a short-line and regional rail service provider operating approximately 8,875 miles in the United States and Canada, has acquired four short-line railroads from U.S. aluminum producer Alcoa for $77.5 million in cash.
   The four railroads, operating a total of 25 miles, served Alcoa aluminum manufacturing operations in Texas and New York and a former Alcoa-owned specialty chemicals facility in Arkansas. For the fiscal year ended June 30, the four railroads handled 30,000 carloads, generating an operating income of $10.1 million on revenue of $20.8 million.
   “We are pleased to have these four railroads and the dedicated employees who serve them join RailAmerica,” said Charles Swinburn, chief executive officer of Boca Raton, Fla.-based RailAmerica. “In addition to a well maintained asset base and excellent customers, the railroads have a history of strong cash flow generation. RailAmerica expects that the transaction will be accretive in the first year.”