CSX Corp has reached agreement to convey its domestic container shipping unit, CSX Lines LLC, to a venture formed with The Carlyle Group for approximately $300 million in cash and securities.
The transaction is subject to customary conditions and regulatory approvals. Closing is expected to take place in first-quarter 2003.
CSX Corp will receive $240 million in cash and $60 million of securities issued by the venture. It has the potential to gain additional value if certain financial targets are met.
Charles G “Chuck” Raymond, the current CSX Lines president and chief executive officer, and his management team will remain in place for the Charlotte NC-based ocean carrier, which will be renamed Horizon Lines LLC. Raymond also will chair the board of directors of the company.
Credit Suisse First Boston Corp and Wachtell, Lipton, Rosen & Katz advised CSX Corp on this transaction.