GATX Corporation to Sell American Steamship Company Business Segment to Rand Logistics, Inc.
CHICAGO, Feb. 10, 2020 (GLOBE NEWSWIRE) -- GATX Corporation (NYSE:GATX) today announced that it has entered into a stock purchase agreement for the sale of its American Steamship Company (ASC) business to Rand Logistics, Inc. for a purchase price of $260 million, subject to working capital and other closing adjustments. GATX expects the net sales proceeds to reduce its new debt issuance in 2020.
ASC operates the largest fleet of U.S.-flagged vessels on the Great Lakes, providing waterborne transportation of dry bulk commodities such as iron ore, coal, and limestone. ASC reported segment profit of $46.1 million for 2019 (including a one-time gain of $10.5 million), and its assets comprised 3.5% of GATX’s total assets on Dec. 31, 2019.
“As a leading operator of self-unloading vessels on the Great Lakes, ASC has been a strong contributor for GATX since 1973,” said Brian A. Kenney, president and chief executive officer of GATX. “This sale allows GATX to focus on our core franchises in global railcar and aircraft spare engine leasing.”
The transaction is subject to customary closing conditions and regulatory approvals.
COMPANY DESCRIPTION
GATX Corporation (NYSE:GATX) strives to be recognized as the finest railcar leasing company in the world by our customers, our shareholders, our employees and the communities where we operate. As the leading global railcar lessor, GATX has been providing quality railcars and services to its customers for over 121 years. GATX has been headquartered in Chicago, Illinois since its founding in 1898. For more information, please visit the Company’s website at .
FORWARD-LOOKING STATEMENTS
Statements in this News Release not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “continue,” “likely,” “will,” “would”, and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.
The following factors, in addition to those discussed under “Risk Factors” and elsewhere in this report and in our other filings with the U.S. Securities and Exchange Commission (“SEC”), could cause actual results to differ materially from our current expectations expressed in forward-looking statements:
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FOR FURTHER INFORMATION CONTACT:
Shari Hellerman
Director, Investor Relations
GATX Corporation
312-621-4285
Investor, corporate, financial, historical financial, and news release information may be found at
