GREENWICH, Conn. (AP) -- Genesee & Wyoming says it will buy fellow regional railroad operator RailAmerica for about $1.39 billion in cash.
The Greenwich, Conn., company will pay $27.50 for each share of RailAmerica Inc., which is based in Jacksonville, Fla.
The price represents a premium of nearly 11 percent over RailAmerica's closing price of $24.81 on Friday.
Genesee & Wyoming Inc. says the deal will combine the two largest short line and regional rail operators in North America and strengthen its ability to serve its industrial customers.
The U.S. Surface Transportation Board still must approve the deal. The companies say that could happen by the fourth quarter.
RailAmerica announced in May that it was considering strategic alternatives, including a possible sale.
