CSX Corp. (NASDAQ:CSX) announced Wednesday that it has signed an agreement with Quality Distribution to acquire bulk liquid chemicals transportation provider Quality Carriers Inc. Terms of the agreement were not disclosed.
The Quality Carriers management team will continue to lead the chemical transportation entity as a part of CSX. Randy Strutz, president of Quality Carriers, explained the existing synergies between the two companies will offer better efficiencies for their customers.
“Quality Carriers is excited to become a new and integral part of CSX, which has unparalleled knowledge, experience and presence in the rail-based bulk chemicals transportation space,” he said. “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.”
Quality Carriers said it currently offers the largest tanker fleet in North America with a team of about 2,500 drivers. The combination of CSX’s network and more than 100 Quality Carriers’ company-owned and affiliated terminals and facilities is designed to create a strong multimodal supply chain for chemical producers and shippers.
“The acquisition of Quality Carriers further demonstrates our commitment to the strategic growth of our business and deepening our relationships with customers,” said James M. Foote, president and CEO of CSX. “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.”
The agreement is subject to regulatory review and closing conditions. It is expected to close in Q3.