Norfolk Southern Corporation acquired Delaware and Hudson Railway Co. line (Sunbury, PA - Schenectady, NY, 282 miles) for $215 million (land $49M; roadway/track $162M; other property ~$4M), a transaction completed in September 2015, structured as cash asset purchase, recorded within property additions. The deal was a Asset purchase (rail line).
Delaware and Hudson Railway Co. line (Sunbury, PA - Schenectady, NY, 282 miles) operates in Class I freight rail / route-network expansion, is based in Sunbury, Pennsylvania to Schenectady, New York (upstate New York / northeastern Pennsylvania). Norfolk Southern completed the acquisition of 282 miles of the Delaware and Hudson Railway Co. (D&H) line between Sunbury, Pennsylvania and Schenectady, New York for $215 million. The line — part of the D&H, a Canadian Pacific subsidiary — gave NS single-line routes from Chicago and the southeastern United States to Albany, New York, and to its intermodal terminals in Scranton, Pennsylvania and Mechanicville, New York, and provided an enhanced connection to its Pan Am Southern LLC joint venture serving New England. NS had previously provided service over these lines via trackage rights and haulage agreements. As part of the transaction NS hired, trained and qualified 152 former D&H employees. The purchase price comprised land ($49 million), roadway including bridges, tunnels, grading, rail, cross ties and other track material ($162 million), and other property.
Owning the D&H line converted trackage-rights service into single-line ownership, improving NS's routes into upstate New York and its connection to the Pan Am Southern New England network.
The line filled a gap NS had only served via trackage rights, delivering single-line routes into Albany and a stronger connection to the Pan Am Southern network in New England. Single-line routing efficiencies; improved integration with the Scranton and Mechanicville intermodal terminals and the Pan Am Southern JV. Operated by Norfolk Southern Railway; 152 former D&H employees hired, trained and qualified
On September 18, 2015, we completed the acquisition of 282 miles of the Delaware and Hudson Railway Co. (D&H) line between Sunbury, Pennsylvania and Schenectady, New York, for $215 million.Norfolk Southern Corporation, FY2015 Form 10-K
Advisory firms were not disclosed for this transaction.