The Carlyle Group Acquires Majority Stake in CSX Lines for $300 Million
Washington, DC - Global private equity firm The Carlyle Group today announced that it has agreed to acquire a majority stake in CSX Lines, LLC from the CSX Corp. (NYSE: CSX) in a transaction valued at $300 million. Current CSX Lines President and CEO Charles G. (Chuck) Raymond and his management team will remain in place and the new entity will be called Horizon Lines, LLC. Mr. Raymond will also serve as Chairman of the company's board.
CSX Lines, with 17 U.S. flag vessels and 22,000 containers, is the nation's largest ocean transport company, providing ocean transportation and logistics services to and from the continental United States, Alaska, Hawaii, Guam, and Puerto Rico.
Carlyle Managing Director Greg Ledford said, “CSX Lines is a well-managed company that has a bright future. We look forward to working with Chuck Raymond and his seasoned team in the coming years to further unlock CSX Lines' great potential. CSX Lines complements Carlyle's growing transportation portfolio.”
CSX Corp. President Michael J. Ward, said, “This is 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.”
Charles G. Raymond said, “We are excited about working with The Carlyle Group and benefiting from its transportation experience and financial expertise and support. We expect to grow profitably and maintain our position as the nation's largest and most successful ocean shipping company.”
The equity for this transaction will come from Carlyle Partners III, L.P., Carlyle's flagship U.S. Buyout Fund. Financing for the transaction has been provided by ABN AMRO Bank. The transaction is subject to customary conditions and regulatory approval and is expected to close in the first quarter of 2003.