CSX to Acquire Quality Carriers, Inc.
12 May 2021 - 10:00PM
CSX Corp. (NASDAQ: CSX) today announced that it has signed a
definitive agreement to acquire Quality Carriers, Inc. ("Quality
Carriers"), the largest provider of bulk liquid chemicals truck
transportation in North America, from Quality Distribution, Inc.
Terms of the transaction were not disclosed.
A leader in bulk chemicals transportation since
1913, Quality Carriers operates the most extensive bulk tank
trucking fleet in North America, with around 2,500 drivers. Through
a network of over 100 company-owned and affiliate terminals and
facilities in key locations throughout the U.S., Canada and Mexico,
Quality Carriers provides transportation services to many of the
leading chemical producers and shippers in North America. The
transaction will create a unique multimodal chemicals
transportation solution that will expand the reach of both CSX and
Quality Carriers.
James M. Foote, president and chief executive
officer of CSX said: “The acquisition of Quality Carriers further
demonstrates our commitment to the strategic growth of our business
and deepening our relationships with customers. Our new partnership
will provide chemical producers and shippers with a
first-of-its-kind multimodal solution that capitalizes on the
powerful synergies between Quality Carriers’ truck transportation
fleet and our cost-advantaged rail network. We believe that this
new capability will create meaningful long-term value for our
company.”
Quality Carriers’ management team, led by
President Randy Strutz, will continue to lead the business as part
of CSX.
Mr. Strutz said: “Quality Carriers is excited to
become a new and integral part of CSX, which has unparalleled
knowledge, experience and presence in the rail-based bulk chemicals
transportation space. Together, we will be exceptionally positioned
to provide our customers – many of which have existing
relationships with both CSX and Quality Carriers – with a unique
and seamless rail-to-highway offering. We look forward to
partnering with CSX and to create a new level of efficiency for
bulk chemicals transportation.”
The transaction is expected to close in the
third quarter of 2021, subject to regulatory review and certain
customary closing conditions.
Goldman Sachs & Co. LLC is acting as
financial advisor and Davis Polk & Wardwell LLP is acting as
legal advisor to CSX in connection with the transaction.
About CSX
CSX, based in Jacksonville, Florida, is a
premier transportation company. It provides rail, intermodal and
rail-to-truck transload services and solutions to customers across
a broad array of markets, including energy, industrial,
construction, agricultural, and consumer products. For nearly 200
years, CSX has played a critical role in the nation's economic
expansion and industrial development. Its network connects every
major metropolitan area in the eastern United States, where nearly
two-thirds of the nation's population resides. It also links more
than 230 short-line railroads and more than 70 ocean, river and
lake ports with major population centers and farming towns
alike.
Forward-looking Statements
This information and other statements by the
company may contain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act with respect to,
among other items: projections and estimates of earnings, revenues,
margins, volumes, rates, cost-savings, expenses, taxes, liquidity,
capital expenditures, dividends, share repurchases or other
financial items, statements of management's plans, strategies and
objectives for future operations, and management's expectations as
to future performance and operations and the time by which
objectives will be achieved, statements concerning proposed new
services, and statements regarding future economic, industry or
market conditions or performance. Forward-looking statements are
typically identified by words or phrases such as “will,” “should,”
“believe,” “expect,” “anticipate,” “project,” “estimate,”
“preliminary” and similar expressions. Forward-looking statements
speak only as of the date they are made, and the company undertakes
no obligation to update or revise any forward-looking statement. If
the company updates any forward-looking statement, no inference
should be drawn that the company will make additional updates with
respect to that statement or any other forward-looking
statements.
Forward-looking statements are subject to a
number of risks and uncertainties, and actual performance or
results could differ materially from that anticipated by any
forward-looking statements. Factors that may cause actual results
to differ materially from those contemplated by any forward-
looking statements include, among others; (i) the company's success
in implementing its financial and operational initiatives; (ii)
changes in domestic or international economic, political or
business conditions, including those affecting the transportation
industry (such as the impact of industry competition, conditions,
performance and consolidation); (iii) legislative or regulatory
changes; (iv) the inherent business risks associated with safety
and security; (v) the outcome of claims and litigation involving or
affecting the company; (vi) natural events such as severe weather
conditions or pandemic health crises; and (vii) the inherent
uncertainty associated with projecting economic and business
conditions.
Other important assumptions and factors that
could cause actual results to differ materially from those in the
forward-looking statements are specified in the company's SEC
reports, accessible on the SEC's website at www.sec.gov and the
company's website at www.csx.com.
Contact:Bill Slater, Investor
Relations904-359-1334
Bryan Tucker, Corporate Communications855-955-6397
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