Grupo México, Mexico’s largest mining corporation and operator of the nation’s largest rail fleet, has bought out Jacksonville based Florida East Coast Railway Holdings in a $2.1 billion deal. The firm paid for the all cash purchase by combining $1.75 billion in debt and $350 million in capital. The assets were purchased from Fortress Investment Group, a New York hedge fund that manages FECR assets. Florida East Coast Railway was once under the umbrella of Florida East Coast Industries, parent company of All Aboard Florida, which is developing the Miami-to-Orlando passenger train Brightline. Just prior to the Grupo acquisition, FECR was a corporate entity also owned by Fortress, though separate from FECI. The final acquisition will be completed once it receives government approval.
“The sale of the Florida East Coast Railway does not impact Brightline,” said a statement issued by Brightline. “We have all shared operations-related agreements in place with the Florida East Coast Railway for us to fully build out and implement our passenger rail system.”
