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CN sells CANAC Inc. subsidiary to Savage Companies; CN retains ownership of BELTPACK technology
(Canadian National issued the following news release on April 27.)
MONTREAL -- CN announced today the sale of 100 per cent of the stock of its St. Laurent, Que.-based CANAC Inc. subsidiary to Savage Companies of Salt Lake City, Utah. The transaction, which is expected to close by April 30, 2004, will include CANAC's industrial rail operations in Canada and the United States, its planning and infrastructure engineering services, as well as railway training and international services.
Excluded from the transaction is CANAC's Remote Control Division, which produces BELTPACK(R) and other locomotive remote control products. This group will be renamed BELTPACK Corporation and remain a CN subsidiary. It will continue to serve the North American and international markets with existing staff from its current locations.
Claude Mongeau, executive vice-president and chief financial officer, CN, and chairman of the board of CANAC, said: "CN is very pleased with this transaction, which positions CANAC's core businesses for continued growth under Savage Companies' ownership. This is good news for CANAC's employees and customers. At the same time, the creation of BELTPACK Corporation will ensure CN ownership of the technologically-advanced BELTPACK family of remote control products that have become a mainstay of the North American railroad industry."
Allen B. Alexander, president and chief executive officer of Savage Companies, said: "With this purchase, we look forward to serving existing and new customers in the rail operations, rail planning and training services areas for which CANAC is widely recognized in its approach to safety, productivity and performance. This acquisition accelerates our growth in these railway sectors and provides a strong base for our increased presence in the important Canadian market. We will continue to provide "Best Value-No Worry" service to our customers and are enthusiastic about the prospect of including in our growing operations the expertise and experience of a quality-based organization like CANAC."
Since 1971, CANAC has been a recognized provider of high-quality services for the rail industry, including industrial rail operations in over 32 locations in the United States and Canada. Through its planning and engineering group, CANAC provides rail infrastructure, engineering, capacity planning, signaling and other consulting services. It is an industry leader in innovative railway training services. Its international services group is involved in development and operating services for rail operations and rehabilitation projects overseas directly and through joint ventures and operating agreements.
Savage is a leader in providing services to its customers in oil refining, chemicals, coal production, electric power generation and the rail industry including, among others, operating large bulk terminals for coal, petroleum coke and sulphur. Savage operates in 26 U.S. states and two Canadian provinces.
Canadian National Railway Company spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key cities of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America.
Tuesday, April 27, 2004
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