CSX CORP. SELLS CSX LINES TO CARLYLE GROUP
CSX Corp. said on Tuesday that it has agreed to convey CSX Lines, LLC, CSX Corp’s domestic container shipping unit, to a venture formed with The Carlyle Group for about $300 million. As part of the deal, CSX Lines will be renamed Horizon Lines, LLC.
CSX Corp. will receive $240 million in cash and $60 million of securities issued by the venture. CSX has the potential to gain additional value if certain financial targets are met.
“This transaction is consistent with our long-stated strategy of becoming a more rail-based organization,” said Michael Ward, president of CSX.
Charles G. (Chuck) Raymond, president and chief executive officer of CSX Lines, will head Horizon Lines and also serve as chairman of the company’s board. “CSX Lines is a well-managed company that has a bright future. We look forward to working with Chuck Raymond and his team in the coming years,” said Greg Ledford, Carlyle’s managing director.
CSX Lines, which has 17 U.S.-flag vessels and 22,000 containers, provides ocean transportation and logistics services between the continental U.S. and Alaska, Hawaii, Guam and Puerto Rico.
The Carlyle Group is a private equity firm with more than $13.9 billion under management, employing 510 people in 21 offices in 11 countries. [See www.carlyle.com]