CSX reported May 12 that it will acquire Tampa, Fla.-based trucking company Quality Carriers, Inc., to create an “integrated multimodal chemical transportation solution” for producers and shippers.
The deal—whose terms are undisclosed—is slated to wrap up in third-quarter 2021, “subject to regulatory review and certain customary closing conditions,” according to CSX.
Quality Carriers operates a liquid bulk chemical trucking network, which includes more than 100 company-owned and affiliate terminals and facilities throughout the U.S., Canada and Mexico as well as approximately 2,500 drivers. Its management team, led by President Randy Strutz, will continue to run the business as part of CSX, the Class I railroad said.
“The acquisition of Quality Carriers further demonstrates our commitment to the strategic growth of our business and deepening our relationships with customers,” CSX President and CEO James M. Foote said. “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.”
“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,” said Quality Carrier’s Strutz. “We look forward to partnering with CSX and to create a new level of efficiency for bulk chemicals transportation.”
“Transitioning Quality Carriers to CSX is a tremendous positive for all of our key stakeholders, including our drivers, employees, customers and investors,” said Gary Enzor, Chairman and CEO of Quality Distribution, Inc., parent company of Quality Carriers, who will step down from his role in conjunction with the transaction. “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.”
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.