CSX Corp. is acquiring Quality Carriers Inc., the largest bulk liquid chemical truck transportation provider in North America, from Quality Distribution Inc.
Tampa, Fla.-based Quality Carriers, founded in 1913, operates an extensive bulk tank trucking fleet in North America, with approximately 2,500 drivers. It has a network of more than 100 company-owned and affiliate terminals and facilities throughout the United States, Canada and Mexico.
Terms of the transaction were not disclosed. The transaction is expected to close in the third quarter of 2021, subject to regulatory review and certain “customary closing conditions,” CSX said in a news release.
“The acquisition of Quality Carriers further demonstrates our commitment to the strategic growth of our business and deepening our relationships with customers,” James M. Foote, president and chief executive officer of CSX, said in a statement.
“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,” Foote added. “We believe that this new capability will create meaningful long-term value for our company.”
Quality Carriers’ management team, led by President Randy Strutz, will continue to lead the business as part of CSX.
“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,” Strutz said in a news release.
“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,” Strutz added. “We look forward to partnering with CSX and to create a new level of efficiency for bulk chemicals transportation.”
Goldman Sachs & Co. LLC is acting as the financial advisor, and Davis Polk & Wardwell LLP is acting as legal advisor to CSX for the transaction.