Genesee & Wyoming buying Mississippi railroad

Genesee & Wyoming Inc. has signed an agreement to acquire CAGY Industries Inc. for about $78.4 million in cash.

The final purchase price will be adjusted for working capital at the time of closing.

Founded in 1975 and headquartered in Columbus, Miss., CAGY is the parent company of three short-line railroads: Columbus & Greenville Railway, Chattooga & Chickamauga Railway, and Luxapalila Valley Railroad. They employ 48 people, own and operate a fleet of 22 locomotives, own and lease more than 280 miles of track and are expected to haul more than 26,000 carloads of freight traffic over the next 12 months.

Genesee & Wyoming also reported first quarter net income of $10.4 million, down from $14.3 million in the first quarter of 2007.

Operating revenue was $140.7 million, up from $125.1 million in the same 2007 period.

G&W, based in Greenwich, Conn., owns and operates short line and regional freight railroads and provides railcar switching services in the United States, Canada, Australia and the Netherlands. Operations include 48 railroads with more than 5,700 miles of owned and leased track and about 3,000 additional miles under track access arrangements.