Global alternative asset manager The Carlyle Group (NASDAQ: CG) has agreed to invest up to $800 million in Genesee & Wyoming Inc. (GWI) (NYSE: GWR), which will enable Genesee & Wyoming to acquire RailAmerica, Inc. (NYSE: RA) for an all cash purchase price of $2 billion ($27.50 per share). Equity for the investment will come from Carlyle Partners V, a $13.7 billion U.S. buyout fund. Financing will be provided by Bank of America Merrill Lynch. The transaction is subject to customary closing conditions and regulatory approval and is expected to close in the fourth quarter of 2012.

Greg Ledford, Carlyle Managing Director and Head of the Transportation and Industrial team, said, “We believe this partnership offers strategic benefits and will create significant operational synergies. Carlyle’s industry expertise and global network will help surface acquisition and growth opportunities that will strengthen GWI’s long-term profitability. We look forward to partnering with Jack and his team as we capitalize on these high quality assets and the favorable dynamics of the domestic and global rail industry.”

Jack Hellmann, President and CEO of GWI, said, “This strategic acquisition will create significant shareholder value. Based on our new partnership with Carlyle and the number of additional rail opportunities that we see worldwide, we remain confident in our ability to execute our acquisition and investment strategy to sustain our long term EPS growth. Expanding our footprint provides us with strong leverage to the eventual recovery of the U.S. economy and creates a powerful platform for future domestic and global industrial development. The combination strengthens our ability to offer local, flexible, responsive operations with outstanding customer service.”