CSX acquires Quality Carriers

MODAL SHIFT

ACQUISITION • THE SALE OF QUALITY CARRIERS TO CSX PROMISES TO CREATE A MAJOR MULTIMODAL PLAYER IN THE NORTH AMERICAN CHEMICAL LOGISTICS SECTOR

CSX CORPORATION HAS agreed to acquire Quality Carriers, the largest specialist chemical tank truck operator in North America, from Quality Distribution for an undisclosed sum. Quality Carriers has some 2,500 drivers and a network of more than 100 company-owned and affiliate terminals and facilities throughout the US, Canada and Mexico; it provides road transport services to many of the leading chemical producers and shippers in North America.

“The acquisition of Quality Carriers further demonstrates our commitment to the strategic growth of our business and deepening our relationships with customers,” says James M Foote, president/CEO of CSX. “Our new partnership will provide chemical producers and shippers with a first-of-its-kind multimodal solution that capitalises on the powerful synergies between Quality Carriers’ truck transportation fleet and our costadvantaged rail network. We believe that this new capability will create meaningful long-term value for our company.”

After the acquisition, the expectation is that Quality Carriers’ customers will have access to a wider range of cost-effective shipping options, using a combination of rail and trucking networks that will allow those customers to maximise capacity and delivery efficiencies in what Quality Distribution describes as “the first truly integrated trucking and rail offering”.

Randy Strutz, president of Quality Carriers, will stay on to lead the business as part of CSX. “Quality Carriers is excited to become

ACQUIRING THE QC FLEET AND PERSONNEL WILL GIVE

CSX A MAJOR PRESENCE IN THE TRUCKING BUSINESS a new and integral part of CSX, which has unparalleled knowledge, experience and presence in the rail-based bulk chemicals transportation space,” he says. “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.”

BACK TO BOASSO “Transitioning Quality Carriers to CSX is a tremendous positive for all of our key stakeholders, including our drivers, employees, customers and investors,” says Gary Enzor, chairman and CEO of Quality Distribution. “It’s incredibly exciting to see the creation of the CSX/Quality Carriers combination, which has the potential to be a game-changer for our industry. This transaction gives CSX and Quality Carriers the unique opportunity to offer a powerful combination of truck and rail solutions to customers, with the added benefit of maintaining QC’s headquarters in Tampa.”

Quality Distribution’s wholly owned subsidiary Boasso Global, a leader in tank container cleaning and depot services in North America and Europe, will become a standalone entity, based in Tampa, Florida; after that, the Quality Distribution name will be phased out. Enzor will step down from his role, having been appointed CEO in 2007 and chairman in 2013, though he will continue as a member of Boasso Global’s board of directors. Joe Troy, currently CFO, will then become CEO of Boasso Global, working alongside Tony Morsovillo, who will continue in his role of president.

Funds advised by Apax Partners, which acquired Quality Distribution in 2015, will continue to be the predominant shareholder of Boasso Global. “We are extremely pleased with this transaction, as Boasso Global can now build on its impressive record of success as a standalone entity,” says Ashish Karandikar of Apax Partners. “We believe the future is bright for both Boasso Global and Quality Carriers.”

The transaction is expected to close in the third quarter, subject to regulatory review and customary closing conditions. www.csx.com www.qualitycarriersinc.com www.boassoglobal.com