PITTSBURG, Kan., July 6, 2020 /PRNewswire/ -- Dow Inc. has selected Watco Companies to acquire the rail infrastructure assets and related equipment at six major North American sites.
Watco, a transportation service company, will provide select rail services at Dow's flagship locations in Freeport and Seadrift, Texas; St. Charles and Plaquemine, Louisiana; and Fort Saskatchewan and Prentiss in Alberta, Canada. Dow is the largest olefins and polyethylene manufacturer in North America.
"Watco is excited to serve Dow and honored to acquire these incredible assets," said Dan Smith, Chief Executive Officer of Watco. "We are grateful for the confidence Dow has shown in Watco by trusting us with this critical role. This represents a revolutionary approach to industrial in-plant rail operations and we're proud to help Dow create value for many years to come."
Watco will partner with the Transportation Infrastructure group that manages the Infrastructure Investing strategy and funds managed by Oaktree Capital Management, L.P. to execute the transaction. Oaktree has been an investor in Watco since December 2018.
"We appreciate Dow's belief in Watco, and we look forward to this long-term partnership," said Josh Connor, Managing Director and Co-Portfolio Manager of Oaktree's Infrastructure Investing strategy. "Oaktree is extremely proud to be a part of the Watco family." Working alongside high quality management teams, Oaktree's Infrastructure Investing strategy is a constructive long-term investor with financial and operational expertise, facilitated by deep transportation industry experience.
Watco is a transportation service company that owns and operates a diverse network of short line railroads, terminals, ports, and mechanical shops across North America and Australia. With nearly 5,000 Team Members, Watco has been growing with customers since 1983. For more information, visit watcocompanies.com.
Oaktree is a leader among global investment managers specializing in alternative investments, with $113 billion in assets under management as of March 31, 2020. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 950 employees and offices in 19 cities worldwide. For additional information, please visit Oaktree's website at http://www.oaktreecapital.com/.
SOURCE Watco Companies