Sand Springs Railway Company (SS), a managed affiliate of OmniTRAX, Inc., one of the largest privately held transportation service companies in North America and an affiliate of The Broe Group, is acquiring the Gerdau (NYSE: GGB) mill site in Sand Springs, Okla. Sand Springs Railway Company provides freight service between Sand Springs and Tulsa. Financial terms were not disclosed.
Sand Springs Holdings, LLC, an OmniTRAX affiliate, purchased SS from Gerdau in 2014 and has since been leasing portions of the 146-acre site. Part of the steelmaking operations on the site will be demolished and the property will be developed for mixed use, including industrial, retail, office and transportation/logistics.
“The mill site is a great location to attract tenants that require solid infrastructure, access to major transportation lanes and support from our top-rated development team. It will also give us the opportunity to expand the local operation of OmniTRAX Logistics Services, our transloading, terminal and logistics solutions affiliate,” said Kevin Shuba, CEO of OmniTRAX, Inc. “We appreciate the solid working relationship we’ve had with Gerdau over the past two years and their professionalism during the sale and transition period.”
About OmniTRAX, Inc.
As one of North America’s largest private railroad and transportation management companies, OmniTRAX's core capabilities range from providing management services to railroad and port companies and to intermodal and industrial switching operations. Through its affiliation with The Broe Group and its portfolio of managed companies, OmniTRAX also has the unique capability of offering specialized industrial development and real estate solutions, both on and off the rail network managed by OmniTRAX. More information is available at www.omnitrax.com.
About The Broe Group
The Broe Group, based in Denver, Colorado, is a diversified privately-owned enterprise with a multi-billion dollar asset base. The Broe Group and its affiliates employ more than 1,000 people directly and provide employment for countless others through its Great Western Industrial Park in Northern Colorado. The Broe Group and its affiliates own and/or manage commercial real estate and other businesses across North America. Its transportation affiliate, OmniTRAX, Inc., is a leading transportation services firm with railroad, port and terminal operations, and is the 2nd largest operator of short-line railroads in the U.S. Its energy affiliate, Great Western Oil & Gas Company, is a top 10 driller in Colorado and among the top 100 drillers in the U.S. The Broe Group has multiple other investment affiliates, including Three Leaf Ventures, which is focused on innovative healthcare technology start-ups. For more information, see www.broe.com.
About Gerdau
Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. It has industrial operations in 13 countries - in the Americas, Europe and Asia - which together represent an installed capacity of more than 25 million metric tons of steel per year.
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