Sale Completed for Majority Of GATX Terminals' US, European Operations
Mar 1, 2001 12:00 PM, Modern Bulk Transporter staff
GATX Corporation announced March 1 that it completed the sale of the majority of GATX Terminals’ domestic operations to Kinder Morgan Energy Partners LP. This sale includes GATX Terminals' domestic terminaling operations and the Central Florida Pipeline Company. The sale of GATX's CalNev Pipeline to Kinder Morgan will follow upon the receipt of certain regulatory approvals.
"We are very pleased that the GATX Terminals sale process is progressing as planned,” said Ronald H Zech, chairman of GATX Corporation. “In each case, we have realized substantial value for GATX shareholders while concluding transactions with leading companies that are positioned to expand GATX Terminals' operations. We are working closely with Kinder Morgan to close the final piece of the domestic transaction, and then we will focus our full effort on the sale of the Asian operations."
The purchase price for the domestic operations was $1.15 billion, including approximately $1.0 billion in cash plus the assumption of external debt and certain liabilities. Approximately $800 million of the purchase price was realized in conjunction with today's closing, including approximately $620 million in cash plus the assumption of debt and other liabilities. The remainder of the purchase price will be realized upon closing of the CalNev Pipeline sale.
GATX Corporation also announced that it has closed sales of substantially all of GATX Terminals' European operations. The company has completed the sale of GATX Terminals Antwerpen N.V., a wholly-owned terminal operation based in Antwerp, to Oiltanking GmbH. GATX’s 50% interest in Terminales Portuarieas, SA. (TEPSA) is being sold to its partner, Petrofrance Chemie S.A. Total gross proceeds from the sale of the entire European network will approach $100 million.