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Non-Tech : FreightCar America - RAIL - -- Ignore unavailable to you. Want to Upgrade?

To: Carey Thompson who wrote (33)	9/6/2007 1:39:43 AM
From: richardred	Respond to of 64

What a great long term return on investment. Lombard's Portfolio Company, the Dakota Minnesota and Eastern Railroad, to be Acquired by Canadian Pacific Railway Limited in $2.5 Billion Transaction Wednesday September 5, 11:29 pm ET SAN FRANCISCO, Sept. 5 /PRNewswire/ -- Lombard Investments, Inc. ("Lombard") announced today that the Canadian Pacific Railway Limited ("CP") has signed an agreement to acquire the Dakota Minnesota and Eastern Railroad Corporation ("DM&E"), a Lombard portfolio company. The acquisition will consist of a $1.48 billion cash payment at closing and future contingent payments of up to approximately $1.0 billion. Future payments are related to the development of a major rail line linking the DM&E to the Wyoming Powder River Basin coal deposits, the United States' largest source of low sulfur coal. The transaction is scheduled to close within the next 30 to 60 days. In 1986, Lombard led an investor consortium that provided equity for the $34 million acquisition of the railroad's initial assets. Over time, the founding investors continue to control the Company after investing additional capital along with new investors to finance the Company's growth and substantial expansion through two add-on acquisitions and significant capital investment in the Company's rail infrastructure, ultimately leading to a valuation in excess of $1.5 billion. According to Matt Taylor, a DM&E Board member, Lombard Managing Director and Lombard's partner in charge of this investment, "This sale marks the highly successful end to a 21-year effort that began with an initial investment made by Lombard with capital we raised from our long term investor partners in the U.K., including Candover Investments plc. Lombard's investment in the DM&E will produce an IRR of approximately 30% for its initial investors, a very strong result over a long holding period. The success of this investment bears witness to the extraordinary vision, patience and hard work of DM&E's management, led by CEO Kevin Schieffer, the railroad's Board of Directors, and a group of highly talented and capable strategic and financial investors." About the DM&E: The DM&E Railroad began operations in 1986. Today, it is one of the largest regional (Class II) railroads in the United States, with 1,103 miles of track located principally in South Dakota and Minnesota. The DM&E also owns the Iowa, Chicago & Eastern Railroad Corporation ("IC&E"). The IC&E began operations in 2002. It has 1,400 miles of track in Illinois, Iowa, Minnesota, Missouri and Wisconsin. (http://www.dmerail.com) About Lombard Investments: Lombard is a leading international private equity investment manager with offices in San Francisco, Bangkok and Hong Kong. Formed in 1985, Lombard has made more than 75 controlling and minority investments in North America and Asia. The firm's investors include some of the world's largest and most respected financial institutions, major pension funds, and corporations, as well as family offices in North America, Europe and Asia. (http://www.lombardinvestments.com) Source: Lombard Investments, Inc. biz.yahoo.com