GATX SUBSIDIARY TO PURCHASE RAILCAR LEASING BUSINESS FROM HAWKER SIDDELEY CANADA
Under the settlement, GATX will pay Hawker Siddeley C$115 million in cash for its 55 percent interest in CGTX, and all claims asserted by GATX against the defendants will be released. Completion of the transaction will be subject to obtaining all necessary regulatory approvals.
"We are pleased to resolve this matter and are excited about our expanded presence in the Canadian marketplace," stated D. Ward Fuller, president and chief executive officer of General American Transportation Corporation. We believe CGTX has significant opportunities for growth, and we look forward to working with the Canadian shippers and railroads in helping them achieve their business objectives," Fuller added.
General American Transportation Corporation leases the largest fleet of railroad tank cars in North America, as well as other specialized freight cars that transport chemicals, food, petroleum and minerals for major industries and users of bulk commodities. General American Corporation also operates railcar service centers and provides fleet management services.
GATX Corporation provides more than $5 billion of service-enhanced assets primarily used to help its customers transport, store or distribute their products. GATX's assets include railcars and locomotives, bulk liquid terminals and pipelines, ships, warehouses, commercial aircraft, technology equipment and other capital assets and related services worldwide. GATX also offers a variety of financial services focusing on owning or managing transportation and distribution assets.
/NOTE TO EDITORS: Investor, corporate information and press releases may be found at http://www.gatx.com. GATX press releases may be obtained by automated Company News On-Call's automated fax service at 800-758-5804. The company identification number for GATX is 105121. GATX logo is available via Wieck Photo Database, 214-392-0888.
/CONTACT: George S. Lowman of GATX Corporation, 312-621-6599/
CO: General American Transportation Corporation; CGTX Inc.;
Hawker Siddeley Canada Inc.; GATX Corporation ST: Illinois IN: TRN SU: TNM
BS -- NYF048 -- 0192 05/24/96 12:38 EDT
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|Date:||May 24, 1996|
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