Quality Distribution recently agreed to sell its Quality Carriers business to CSX Corporation.
Quality Carriers, which operates the largest liquid bulk chemical trucking network in North America, will become a standalone entity within CSX and remain headquartered in Tampa, the company said. Quality Carriers customers will have access to a wider range of shipping options, utilizing a combination of rail and trucking transportation networks that allow them to maximize capacity and delivery efficiencies in an integrated truck and rail offering.
“Transitioning Quality Carriers to CSX is a tremendous positive for all of our key stakeholders, including our drivers, employees, customers and investors,” said Gary Enzor, chairman and chief executive officer of Quality Distribution. “It’s incredibly exciting to see the creation of the CSX/Quality Carriers combination, which has the potential to be a game-changer for our industry.
“This transaction gives CSX and Quality Carriers the unique opportunity to offer a powerful combination of truck and rail solutions to customers, with the added benefit of maintaining QC’s headquarters in Tampa.”
As a result of the transaction, the company’s Boasso Global subsidiary will become a standalone entity headquartered in Tampa. Boasso Global is an international provider of intermodal tank container and depot services with operations in seven different countries and the largest such provider in North America. Boasso will continue to focus its efforts on strong organic and inorganic expansion opportunities in the high-growth, international ISO tank market. The Quality Distribution name will be phased out after the closing of the transaction.
In total, more than 99% of the company’s existing workforce will remain in place, as all terminal and depot-based employees and the majority of Tampa-based corporate office personnel will stay in their existing jobs and locations. Randy Strutz will continue in his role as president of Quality Carriers going forward, with all of QC’s leadership team retaining their current roles.
“Quality Carriers is excited to become a new and integral part of CSX, which has unparalleled knowledge, experience and presence in the rail-based bulk chemicals transportation space,” Strutz said. “Together, we will be exceptionally positioned to provide our customers—many of which have existing relationships with both CSX and Quality Carriers—with a unique and seamless rail-to-highway offering. We look forward to partnering with CSX and to create a new level of efficiency for bulk chemicals transportation.”
The transaction also will not change day-to-day operations for Quality Carriers’ network of independent owner-operators and independent affiliates, though it will create significant opportunities for its 2,500 drivers.
In conjunction with the transaction, Enzor will step down from his role as chairman and CEO. Enzor joined Quality Distribution in 2004 as executive vice president and chief operating officer, was named CEO in 2007, and has served as chairman since 2013. During Enzor’s tenure, Quality Carriers and Boasso Global grew into leaders in their respective industries. Enzor will continue as a member of Boasso Global’s board of directors going forward.
Upon closing, Joe Troy (currently a board member and EVP and CFO of the company), will lead Boasso Global as its chief executive officer. Troy joined the company in 2010 as CFO and has been actively involved in expanding Boasso’s business, having led all merger-and-acquisition activity since its first acquisition in 2011. More recently, he has worked closely on a day-to-day basis with Tony Morsovillo, president of Boasso, who will continue in his current capacity.
“Over the last 15 months I have worked more closely with Tony and his team, and it is abundantly clear to me that he has built an unmatched group of operational experts in the global ISO tank industry,” Troy said. “They deliver outstanding value to their customers, have a strong safety mindset and are eager to operate on a standalone basis to help further accelerate Boasso Global’s growth.
“When augmented by a strong group of Tampa-based executives who will be joining Boasso Global going forward, I feel confident that we will be in an excellent position to enhance the business’ strong momentum.”
Funds advised by Apax Partners, which acquired Quality Distribution in 2015, will continue to be the predominant shareholder of Boasso. “We are extremely pleased with this transaction, as Boasso Global can now build on its impressive record of success as a standalone entity,” said Ashish Karandikar of Apax. “We believe the future is bright for both Boasso Global and Quality Carriers.”
The acquisition of Quality Carriers by CSX is subject to customary closing conditions. The transaction is expected to be completed in the third quarter of 2021.
“The acquisition of Quality Carriers further demonstrates our commitment to the strategic growth of our business and deepening our relationships with customers,” said James M. Foote, president and chief executive officer of CSX. “Our new partnership will provide chemical producers and shippers with a first-of-its-kind multimodal solution that capitalizes on the powerful synergies between Quality Carriers’ truck transportation fleet and our cost-advantaged rail network.
“We believe that this new capability will create meaningful long-term value for our company.”
