2019 A Big Year for Watco?

For discussion of the various Class III Lines of WATCO Companies. Class II holdings should be discussed in the relevant separate forums above.

Their website is here: http://www.watcocompanies.com/
A list of their holdings is here: https://en.wikipedia.org/wiki/Watco_Companies

2019 A Big Year for Watco?

Postby CN9634 » Sun Jan 06, 2019 8:37 pm

2019 looks like a big year of potential M&A for Watco... all the recent rebranding and other behind scenes work seems to be queuing up the GWI nemesis as they now have access to $450M in capital. With that, the ex-CEO Dave Starling of KCS is now on their board,. Also to note, Oaktree Capital has teamed up with GWI in the past on M&A opportunities (doesn't appear any stuck but I'll keep researching). See more here:

http://watcocompanies.com/pdfs/media/Wa ... elease.pdf

"Watco and Oaktree Announce a Strategic Partnership
and a $450 million Investment and Capital Commitment
PITTSBURG, KS – January 4, 2019 – Watco Companies, LLC (“Watco”) and funds managed by
Oaktree Capital Management, L.P. (“Oaktree”) are pleased to announce the formation of a
strategic partnership and a definitive agreement whereby Oaktree has committed $450 million
of non-controlling equity capital to Watco."
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Re: 2019 A Big Year for Watco?

Postby johnpbarlow » Fri Jan 11, 2019 4:29 am

This excerpt re: NS as a key strategic partner for Watco is provocative:
“Our Customers are constantly providing new growth opportunities requiring us to explore new
ways to serve their ever-changing needs, and Watco has been blessed to have tremendous
strategic partners in Kinder Morgan, Norfolk Southern, and SkyKnight Capital, who have made
us better,” added Rick Baden, President & CFO.


Anyone know the nature of the NS-Watco partnership? Will there likely be more Ithaca Central RRs where Watco leases NS track and assumes operations?
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