The battle to form North America’s first end-to-end rail network is heating up. Kansas City Southern rejected Canadian Pacific’s merger offer and accepted a more lucrative deal proposed by Canadian National. KCS’s Board of Directors announced last week that CN’s $33.6 billion offer, which came a few weeks after receiving an offer from CP to buy the nation’s smallest Class I railroad, constitutes a superior proposal. The board voted to terminate CP’s $29 billion proposal, which pitched forming a seamless Canada-U.S.-Mexico network, and accept a similar offer by CN. Under the terms of the CN merger agreement, upon closing each share of KCS common stock will be exchanged for $200 in cash and 1.129 shares of CN common stock. Closing will be subject to customary conditions, including KCS stockholder approval and approval by the Surface Transportation Board of CN’s proposed voting trust. As part of the deal, KCS will pay…
Atlas Model Railroad Co. announced this spring that it has acquired two product lines, including M.T.H. Electric Trains’ Premier O-Scale Locomotive and Rolling Stock lines. The company also bought N-scale vehicle tooling from River Point Station Fine Scale Models. Molds and tooling sold to Atlas include Premier diesel locomotives, freight cars and passenger cars. A number of O-scale RailKing accessories are part of the deal. Atlas also acquired a license for the MTH Proto-Sound 3 Sound & Control Electronics Boards, which enable control via DCS (Digital Command System). Part of the license will give Atlas the option to sell DCS components. Atlas will begin production with a run of the Madison 70-foot passenger cars. Road names will match those on the USRA 4-6-2 Pacifics. Coaches, RPO cars, baggage, dining, combine and observation cars will be produced (depending on road name). “M.T.H. has long been an outstanding manufacturer of model trains,…
Canadian National announced this week an offer to acquire Kansas City Southern in a cash-and-stock transaction valued at $33.7 billion, or $325 per share. The offer, submitted in a letter to KCS’s board of directors, follows a $29 billion offer from Canadian Pacific Railway in March to buy the nation’s smallest Class I railroad. Under the terms of the proposal, following closing into a voting trust, KCS shareholders will receive $200 in cash and 1.059 shares of CN common stock for each KCS common share. Based on the March 19, 2021, closing price of CN shares, CN’s proposal is valued at $325 per KCS share. The offer represents a 21% improvement over the current value of KCS’ agreement with CP, CN said in a release. In the proposal submitted to KCS’s board of directors, CN President and CEO JJ Ruest said combining the companies offers greater choice and efficiencies for…
Canadian Pacific Railway is acquiring Kansas City Southern for $29 billion (USD) in stock and cash, creating North America’s first rail network connecting Canada, the U.S. and Mexico, the companies announced Sunday. The new company will be called Canadian Pacific Kansas City (CPKC). While remaining the smallest of six U.S. Class 1 railroads by revenue, the combined company will be much larger and more competitive, operating approximately 20,000 miles of rail, employing close to 20,000 people and generating revenues of approximately $8.7 billion based on 2020 numbers. The deal values KCS shares at $275 each — 23 percent above Friday’s close — and is subject to approval of the U.S. Surface Transportation Board. CP will assume $3.8 billion in KCS outstanding debt, valuing the deal at $25 million. Boards from each company unanimously approved combining. Following the closing into a voting trust, KCS common shareholders will receive 0.489 of a…
ScaleTrains.com, Inc., announced at the Virtual Railroad Hobby Show on Sunday that it acquired M.T.H. Electric Trains’ HO-scale and S-gauge tooling assets at the end of last year. The acquisition includes steam and diesel locomotives, freight cars and track in both scales. HO tooling includes turbine and electric locomotives, subway sets, passenger cars and other models. Engineering schematics for several all-new steam-era HO projects also were received as part of the agreement. “M.T.H. is recognized as a leading manufacturer of HO-scale steam locomotives,” ScaleTrains.com President Shane Wilson said in a statement. “M.T.H.’s HO products also allow us to broaden our product line into passenger cars, track and more. We believe there is an opportunity to grow the S market as well.” Both scales are being melded into ScaleTrains.com’s umbrella of brands, including Rivet Counter. Several molds have been transferred to the ScaleTrains.com factory, and testing is underway. Over the next…
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The Springmaid Line
In its 125 years, the Lancaster & Chester Railroad, known as the Springmaid Line, has been the pulse of South Carolina’s Chester and Lancaster counties. The line evolved from a narrow-gauge operation that ran out of money, like so many railroads in the late 19th century. And today, the L&C is in a very active growth mode and is the region’s ticket to the future.
Gateway Grain Railway
William Selleck’s traveling N-scale “shadowbox” layout may pale in comparison to the large layout in his Lansing, MI, basement, but it expands the mind. At 2 feet by 8 feet, the Gateway Grain Railway depicts a fictional short line operated by the large rural elevator that it serves. The compact size has allowed Selleck to focus on weathering, realism and operations, and he loves to share his work with other modelers.
Northland Rail aims to boost marketing for model railroad and railroad organizations behind the expertise of veteran hobbyists. …
Project Railroad: Part II of modeling a modern day newspaper production facility on the N-scale Whitehurst & Pine Ridge Railroad. …
Take a ride with the Cowcatcher on the The Rocky Mountaineer’s new “Rockies to Red Rocks” excursion, which debuted in the U.S. in August. …
The Cumbres & Toltec Scenic Railroad marks 50 years (plus one) of narrow-gauge excursions between Chama, NM, and Antonito, CO, will a celebration of steam. …
THESE STORIES AND MORE, PLUS A FULL CALENDAR OF UPCOMING EVENTS AND THE BUSINESS PULSE OF THE RAILROAD INDUSTRY!
Whitehurst & Pine Ridge Railroad
Product News & Review
Rapido HO-Scale SP SW1200 Locomotive
The Cowcatcher reviews Rapido Trains’ dynamic HO-scale Southern Pacific “Bloody Nose” SW1200 switching locomotive in the July/August 2021 issue. The model, designed from original blueprints and field measurements, is full of prototype details and runs effortlessly with lots of pulling power.
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