Shares of Genesee & Wyoming, Inc. (GWR, Financial), a leading short line railroad, rose 22.4% during the first quarter after completing a transformational acquisition of its primary competitor for $2 billion. The combined entity makes Genesee & Wyoming the dominant regional rail operator in the U.S., adding revenue diversity and cementing barriers to entry. In addition, private equity firm The Carlyle Group acted as a strategic equity partner in this transaction, making a $350 million investment at $65 per share and advising on future acquisitions. (Matt Weiss)
From Baron Funds’ first quarter 2013 letter.
From Baron Funds’ first quarter 2013 letter.
