Coal Age

NOV 2012

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suppliers news continued "Caterpillar and its dealers keep cus- tomers at the forefront of everything we do and that couldn't be more true for the global mining business today," said Steve Wunning, Caterpillar group president with responsibility for Resource Industries. "We are very pleased that Whayne Supply and Walker Machinery are going to play an integral role in what we believe is a high- growth industry." Monty Boyd, owner and CEO of Boyd Company LLC, said, "We have been work- ing closely with Caterpillar for several months to make this transition a success. This new business unit will be integrated into our current Whayne and Walker opera- tions. We look forward to providing these new mining products and support in our area." Caterpillar has announced similar transactions with other dealers over the last several months. Caterpillar continues to hold discussions with other Cat dealers that have mining activity in their territories and will continue to operate the former Bucyrus distribution business until the transitions have occurred in a given territory. In addition to its home office in Louisville, Whayne Supply has branches throughout Kentucky and southern Indiana. Walker Machinery handles most of West Virginia and southeastern Ohio. GWI Completes Acquisition of RailAmerica Genesee & Wyoming Inc. (GWI) has com- pleted the acquisition of RailAmerica, Inc. for $1.37 billion. Immediately following the closing of the acquisition, control of RailAmerica was placed into a voting trust with R. Lawrence McCaffrey appointed as trustee. The trust will remain in effect until the U.S. Surface Transportation Board (STB) issues its decision on GWI's applica- tion to control RailAmerica and its rail- roads, which could be as early as the fourth quarter of 2012 or as late as the first quarter of 2013. During the period that RailAmerica is held in trust, GWI will account for its ownership under the equity method of accounting. Expected cost savings from the business combination will not be realized until the STB approves GWI's control of RailAmerica's railroads. GWI financed the $1.37 billion cash pur- chase price for RailAmerica's shares, the refinancing of $1.23 billion of GWI and RailAmerica's total outstanding debt prior to the acquisition, as well as transaction and financing related expenses with approxi- mately $1.85 billion of debt from a new five- year Senior Secured Credit Facility, approximately $460 million of cash from its recent public offerings of common stock and tangible equity units and $350 million through a private issuance of mandatorily convertible preferred stock to The Carlyle Group. Softree Announces Alignment Optimization Tools Softree, in association with the University of British Columbia, has developed a new soft- ware technology, RoadEng - Optimal, to determine the optimal alignment for corri- dor based infrastructure projects (roads, railways, pipelines, channels, etc.). This new technology has been in development for more than three years. The first version of the software will automatically determine the lowest cost vertical alignment based on design speed, cross section configuration and horizontal alignment. It will account for excavation, grading and material move- ment costs. Unlike previous attempts at alignment optimization, this new technology produces a true optimal solution (not heuristic) and 54 www.coalage.com November 2012

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