Monday, July 10, 2017

Grupo México completes FEC acquisition

Written by 
Grupo México completes FEC acquisition Flordia East Coast

Grupo México, S.A.B. de C.V. has completed the acquisition of Florida East Coast Holdings Corp. (FEC) through its Transportation Business Unit Grupo México Transportes, S.A. de C.V. (GMXT).

As previously reported, the US$2-billion acquisition positions GMXT as a relevant player in the North American transport business, together with its current operations in Mexico and the state of Texas. The acquisition was funded with a $1.55-billion loan from BBVA and Credit Suisse, as well as a $250-million loan from Santander, with the remainder funded with GMXT's own resources and $97 million in debt at the FEC level.

Before closing the operation, GMXT obtained the approvals required from all of the regulatory agencies in the United States, including the Committee on Foreign Investment in the United States, the Surface Transportation Board and the Federal Communications Commission.

Grupo México confirmed its intent to acquire the 351-mile FEC in March. FEC operates main line linking Miami and Palm Beach with St. Augustine and Jacksonville, where it interchanges with Class 1 railways CSX and Norfolk Southern. FEC handles around 550,000 loads of freight per year with commodities including chemicals, metals, wood and automobiles.