RailAmerica Inc. to acquire Michigan Rail Lines from CSX Transportation.BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 4, 1996--RailAmerica Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :RAIL) announced today that it has entered into two agreements to acquire more than 53 miles of rail lines in Michigan from CSX Transportation Inc. (NYSE NYSE See: New York Stock Exchange :CSX CSX Chessie Seaboard Multiplier (railroad transportation company) CSX Cayman Islands Stock Exchange CSX Changsha, China (Airport Code) CSX Cardiac-Specific Homeobox CSX Seaboard Coastline Railroad ). The rail lines, currently operated by CSX, are located in the Thumb region in northeastern Michigan, approximately 100 miles north of Detroit. Upon acquisition, RailAmerica's Michigan-based rail subsidiaries, the Huron and Eastern Railroad, and the Saginaw Valley Railway, will operate the two new lines which will increase their combined Michigan network to more than 233 route miles, with access to both CSX Transportation and the Central Michigan Railway. The transactions are subject to completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , regulatory approvals and other customary conditions, and closing is expected to occur during the first half of 1996. In announcing the acquisition, John H. Marino, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of RailAmerica said, "These acquisitions will provide new competitive rail access for shippers located in the Michigan Thumb region, one of the premier agricultural commodity producing areas of the country. Additionally, we will provide service to a new rail/truck transload facility in the Saginaw (MI) terminal area. These pending transactions are part of RailAmerica's long term strategy to become a major transportation service provider in key regional markets throughout the United States." RailAmerica Inc. is a diversified, publicly-held transportation company with two business groupings -- (1) transportation and distribution, and (2) manufacturing and financial services. The company owns and develops short-line and regional freight railroads and operates seven railroads with approximately 460 miles of rail lines in Michigan, Minnesota, Tennessee, Pennsylvania, Delaware and Texas. The company also owns a distribution services company, an intermodal services company, a transportation equipment finance company, and a regional motor carrier based in Sault Ste. Marie, Ontario For the city of Sault Ste. Marie in Michigan, or the Canadian federal and provincial electoral districts of the same name, see: Sault Ste. Marie. Sault Ste. Marie (nicknamed "the Sault" or "the Soo") is a city on the St. Marys River in Ontario, Canada. , Canada. Also, through its subsidiary, Kalyn/Siebert Inc., the company manufactures a broad line of heavy duty specialty truck trailers marketed throughout the U.S., Mexico and Canada. CONTACT: RailAmerica Inc. Gary O. Marino, 407/994-6015 or KCSA KCSA Krannert Center Student Association KCSA Kentucky Crushed Stone Association (Frankfort, KY) KCSA Kyiv City State Administration KCSA Kalamazoo Christian School Association KCSA Kentucky-Canadian Studies Association Joseph A. Mansi/Herbert L. Corbin 212/682-6300 ext. 205/200 |
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