FTAI Infrastructure Inc. will acquire the Wheeling & Lake Erie Railway for $1.05 billion, combining its operations with Transtar to expand rail service in the U.S. Midwest. This is reported by the railway transport news portal Railway Supply.

Wheeling & Lake Erie Railway will be acquired by FTAI for $1.05 billion in a strategic move to expand its freight rail network across multiple states.

FTAI Expands Network with Wheeling & Lake Erie Railway

FTAI Infrastructure Inc. announced plans to purchase The Wheeling Corp., parent of the Wheeling & Lake Erie Railway, in a $1.05 billion transaction. This acquisition aims to strengthen FTAI’s freight network and presence across key Midwestern markets.

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The Wheeling & Lake Erie Railway operates over 1,000 miles of track across Ohio, Pennsylvania, West Virginia, and Maryland. It serves more than 250 customers and connects to Transtar Rail’s Union Railroad near Pittsburgh. The deal enhances FTAI’s logistics infrastructure and opens access to new industrial corridors.

Simultaneously, FTAI will refinance its 10.50% senior notes and Series A preferred stock. It has secured $2.25 billion in total capital—$1.25 billion in new debt and $1 billion in preferred equity from Ares Management. The preferred shares will be issued by a newly formed holding company overseeing both W&LE and Transtar.

Strategic Benefits of the Wheeling & Lake Erie Railway Merger

If the Surface Transportation Board approves the deal, Wheeling & Lake Erie Railway will officially become a Transtar affiliate. FTAI expects to finalize the transaction in Q3 2025. CEO Ken Nicholson highlighted growth opportunities and operational synergies from the merger.

Under Larry Parsons’ leadership since 1992, the Wheeling & Lake Erie Railway transitioned from a coal-focused line to a diversified, customer-centric operation. His vision modernized the railroad, making it a standout regional carrier.

Combining W&LE with Transtar positions FTAI to achieve greater efficiency, network reach, and long-term value. The deal reflects a broader trend of consolidation and innovation in the freight rail sector.

Source: www.progressiverailroading.com

FAQ

What is the Wheeling & Lake Erie Railway?

The Wheeling & Lake Erie Railway is a regional freight railroad operating over 1,000 miles across four U.S. states, serving more than 250 customers.

Who is acquiring the Wheeling & Lake Erie Railway?

FTAI Infrastructure Inc. is acquiring the Wheeling & Lake Erie Railway for $1.05 billion, with plans to merge it with Transtar’s operations.

How will the acquisition affect freight service?

The deal is expected to enhance freight capacity, improve efficiency, and expand network coverage in key industrial regions.

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