FTAI Infrastructure to Acquire Wheeling & Lake Erie Railway for $1.05 Billion

FTAI Infrastructure Inc. has agreed to acquire the Wheeling & Lake Erie Railway Company for $1.05 billion. The W&LE is a Class II regional freight railroad serving over 250 customers in Ohio, Pennsylvania, West Virginia, and Maryland. The acquisition is expected to close simultaneously with FIP's planned reorganization, which includes the creation of a new holding company and the issuance of new shares.

FTAI Infrastructure Inc. (FIP) has agreed to purchase The Wheeling Corporation, owner of the Wheeling & Lake Erie Railway Company (W&LE), for $1.05 billion. The acquisition is expected to close simultaneously with FIP's planned reorganization, which includes the creation of a new holding company and the issuance of new shares. The W&LE, a Class II regional freight railroad, serves over 250 customers across over 1,000 miles of track in Ohio, Pennsylvania, West Virginia, and Maryland.

The acquisition is part of FIP's strategy to expand its freight rail platform and diversify its operations. FIP expects the combined Transtar and W&LE business to generate approximately $200 million of annual Adjusted EBITDA by the end of 2026, driven by growth opportunities and operating efficiencies identified by the two companies. The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions and approval by the U.S. Surface Transportation Board (STB).

FIP has secured commitments for $2.25 billion of total capital, including $1.25 billion of new debt to be issued by the Company and $1 billion of preferred stock to be purchased by Ares Management funds and issued by a newly formed holding company that will own the combined Transtar and W&LE business. The Company expects to gain control of the W&LE upon receipt of approval by the STB, at which time the W&LE will be an affiliate of Transtar.

Barclays and Deutsche Bank provided debt commitments and served as financial advisors to the Company, while Sidley Austin LLP and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors to the Company, and Calfee, Halter & Griswold LLP and Fletcher & Sippel LLC acted as legal advisors to W&LE.

For additional information, investors are encouraged to refer to the presentation posted on FIP's website and the Company's recent Form 8-K, when available.

References:
[1] https://www.globenewswire.com/news-release/2025/08/06/3128312/0/en/FTAI-Infrastructure-Inc-Announces-Agreement-to-Acquire-the-Wheeling-Lake-Erie-Railway-Company.html
[2] https://www.morningstar.com/news/globe-newswire/9507131/ftai-infrastructure-inc-announces-agreement-to-acquire-the-wheeling-lake-erie-railway-company