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Norfolk Southern rolls on
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January 12, 1998: 12:32 p.m. ET
Railroad sells North American Van Lines to investment firm for $200M
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NEW YORK (CNNfn) - Norfolk Southern Corp. said on Monday it agreed to sell its North American Van Lines Inc. subsidiary to the New York-based investment firm Clayton, Dubilier & Rice Inc. for $200 million.
The transaction follows the Norfolk, Va.-based railroad company's sale of North American Van's corporate services business in the early part of this decade.
The carrier company, with headquarters in Ft. Wayne, Ind., was purchased originally from PepsiCo Inc. in 1985 for about $350 million.
Norfolk Southern plans to recognize an unspecified gain from the sale of North American Van Lines in its fiscal second quarter, said spokesman Robert Fort.
Although Clayton, Dubilier has focused previously on turnaround situations, North American Van Lines was profitable, Fort said.
"This sale will allow Norfolk Southern to concentrate on our efforts to improve rail service and competition in the eastern United States," said David R. Goode, Norfolk Southern's chairman, president and chief executive.
The transaction is subject to customary closing conditions and is expected to be consummated before May 31.
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