FTAI Infrastructure Inc. has announced plans to acquire DRUbit LLC from an affiliate of US Development Group LLC for a purchase price based on an enterprise value of $255 million. This strategic acquisition is expected to significantly enhance FTAI's operational capabilities and financial performance, particularly through its Jefferson Terminal segment.

The acquisition is projected to double Jefferson's annual Adjusted EBITDA to approximately $100 million over the next 12 months, as the newly acquired assets are expected to contribute around $50 million of annual Adjusted EBITDA under existing contracts. This move comes as FTAI Infrastructure looks to strengthen its position in the railroads industry, classified under SIC code 4011.

Background

FTAI Infrastructure Inc. (ticker: FIP) operates in the railroads, line-haul operating sector and is listed on the Nasdaq. The company, incorporated in Delaware, has been actively pursuing growth opportunities through strategic acquisitions and investments. Recent filings indicate a focus on expanding its operational footprint and enhancing financial performance.

What the Filing Says

According to the recent filing, "Jefferson intends to combine the acquired assets into the Jefferson bond borrower group and expects to incur approximately $270 million of new debt in the Financing to fund the Acquisition and related fees and expenses, including to repay approximately $255 million of related existing debt." This indicates a significant financial maneuver aimed at leveraging the acquisition for future growth.

Impact

This acquisition is expected to have far-reaching implications for FTAI Infrastructure and its stakeholders. The anticipated doubling of Adjusted EBITDA will not only strengthen the company's financial position but may also influence investor sentiment and market dynamics within the railroads sector. Competitors may need to reassess their strategies in light of FTAI's enhanced capabilities.

What's Next

The filing does not say what happens next, but it is clear that FTAI Infrastructure is positioning itself for significant growth through this acquisition.