Carlyle Group Buying CSX Lines for $300M
siliconinvestor.com
12/17/2002 22:21:53 EST
CSX Corp. said Tuesday it will sell its domestic container shipping unit to The Carlyle
Group for approximately $300 million in cash and securities.
CSX Lines, based in Charlotte, N.C., will retain its management team but be renamed
Horizon Lines.
CSX Lines has 17 U.S. flag vessels and 22,000 containers. The nation's largest ocean
transport company provides ocean transportation and logistics services to and from the
continental United States, Alaska, Hawaii, Guam, and Puerto Rico.
The Carlyle Group is a global private equity firm with more than $13.9 billion under
management. Its U.S. Buyout Fund will supply equity for the deal, while financing will
come from ABN AMRO Bank. The deal is expected to close in the first quarter of
2003, the companies said.
"CSX Lines is a well-managed company that has a bright future," Carlyle managing
director Greg Ledford said in a statement.
CSX Corp. President Michael J. Ward called the development "a terrific transaction for
all parties. Completion of this transaction is consistent with our oft and long-stated
strategy of becoming a more rail-based organization."
CSX Corp., based in Richmond, operates a major rail network covering the eastern half
of the United States. It also owns CSX World Terminals, which manages and has
substantial interests in container terminals in Asia, Europe, and Latin America.
Last week, President Bush named John Snow, chairman and chief executive of CSX
since 1991, to succeed Treasury Secretary Paul O'Neill. |
