CSX to Acquire Quality Carriers, Inc.
Source: Nasdaq GlobeNewswire / 12 May 2021 08:00:01 America/New_York
JACKSONVILLE, Fla., May 12, 2021 (GLOBE NEWSWIRE) -- 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.
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.
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Bill Slater, Investor Relations
Bryan Tucker, Corporate Communications