I love the monuments he left down in the keys.
Posted on 03/29/2017 5:31:47 AM PDT by Ray76
A Mexican transportation company Tuesday agreed to buy Florida East Coast Railway Holdings Corp. from the private equity group that acquired the historic railroad 10 years ago.
GMéxico Transportes S.A. de C.V. (GMXT), a unit of Grupo Mexico, said it is buying FEC from funds management by Fortress Investment Group LLC in an all cash deal.
The amount of the sale was not announced, but several news reports put the value of the deal at $2.1 billion.
FEC is a 351-mile rail line running from Jacksonville to Miami
The company did not say how the acquisition will affect operations of Jacksonville-based FEC.
(Excerpt) Read more at jaxdailyrecord.com ...
Sounds like they’re setting up a new way to ship their criminals.
All cash?
Would be informative to report on who controls Fortress.
A Japanese holding?
https://www.fortress.com/AboutFortress/Leadership/Board.aspx
Feb 14, 2017 - https://www.nytimes.com/2017/02/14/business/dealbook/softbank-japan-fortress-investment-group-masayoshi-sun-private-equity.html?_r=0
May 8, 2007 - Fortress to buy Florida East Coast for $3.5 billion - http://www.reuters.com/article/us-floridaeastcoast-takeover-idUSBNG23960820070508
Mexico is an enemy of the Republic.
I put pennies on those tracks 70 years ago.
I love the monuments he left down in the keys.
Given that Miami Cubans look down on Mexicans as a form of lower life, this will not be the cause of dancing in the streets of Little Havana.
Or anywhere else, for that matter.
So the ‘Smartest Guys in the Room’ managed to turn a $3.5 billion asset into a $2.1 billion asset?
FEC used to have some other short lines around the country that were controlled by the same holding company, but not (technically) directly under the FEC. Were those included in the deal?
Yes, Softbank.
Interestingly enough, it looks like they paid less for Fortress ($3.2 billion) than Fortress paid for FEC ($3.5 billion), and this will mean that they (Softbank) are recovering about 2/3 of their initial investment in Fortress.
Anyone know if these are the same lines that All-Aboard FL will be on?
Yep, and drugs.
I rode that train from Jax to Miami when I was in college.
Sorta reminds me when Japan was going to buy up all the good real estate and companies in the US during the 80’s. The whining was deafening about protecting “our” land and “our” companies. The Japs were going to rule us, and so on. Before that is the Germans. Of course now its China.
How did that workout? Anytime a US company can fleece a foreign investor by selling overpriced assets we should celebrate.
Same track. AAF/Brightline says there is no impact.
The sale of Jacksonville-based FEC Railway, which is owned by Fortress Investment Group, will have no impact on the company’s other holdings — including the Brightline passenger train operation in South Florida. - http://www.miamiherald.com/news/business/article141301728.html
In steam engine days, a train crew had five members, an engineer, a brakeman, and a fireman in the locomotive, and a conductor and a brakeman in the caboose. The steam was exhausted into the air, so the train would have to stop every so often (200 miles, or so)to take on water. With the advent of diesel locomotives, union rules kept the same crew sizes and exchange points even though the diesel operation and reliability eliminated the need for the brakemen and fireman.
The Florida East Coast was first to significantly challenge this pattern. They found they could run the entire length of their 350 mile route with a crew of two, both in the locomotive. They had just an automatic brake light on the caboose. This caused all kinds of consternation at the union. For a while, they were pushing an empty car ahead of the locomotive to detonate dynamite left on the tracks by the "protestors". Finally, the FBI, under one of the very few things President Johnson did right, caught the few perpetrators.
Now virtually all railroading in the US is run with only a crew of only two. It's too bad the railroad that caused this is no longer US owned.
Really looks like it was Fortress that got fleeced and had to sell itself. The Japs still have the other Fortress assets.
Yes, the FEC did stand up to the murdering union savages. The strike lasted from January, 1963 to December, 1974.
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