CALGARY and NEW YORK, Nov. 20,
2019 /PRNewswire/ - Canadian Pacific (TSX: CP) (NYSE: CP)
and Fortress Transportation and Infrastructure Investors LLC (NYSE:
FTAI) announced they have entered into a definitive agreement
whereby CP will acquire the Central
Maine & Quebec Railway ("CMQ").
CMQ owns 481 miles (774 kilometres) of rail lines primarily in
Quebec and Maine. The end-to-end transaction will provide
CP customers with seamless, safe and efficient access to ports at
Searsport, Maine and to
Saint John, New Brunswick, via
Eastern Maine Railway Company (EMRY) and New Brunswick Southern
Railway (NBSR), thereby preserving and enhancing competition.
"This strategic acquisition gives CP a true coast-to-coast
network across Canada and an
increased presence in the eastern U.S.," said CP President and CEO
Keith Creel. "With additional port
access, more dots on the map, and our proven precision scheduled
railroading operating model we are confident this transaction will
bring benefits to all stakeholders moving forward."
As part of the transaction, FTAI will retain ownership of
Katahdin Railcar Services (KRS), a tank car cleaning and repair
facility, and the contract to operate at a 12-mile branch line at
FTAI's Long Ridge Energy Terminal in Monroe County, Ohio. FTAI intends to continue
to develop and grow both the KRS and Long
Ridge branch line businesses.
"We are excited about this transaction as it brings value to our
shareholders, while ensuring that the CMQ continues to provide safe
and reliable rail transportation options," said Joe Adams, FTAI CEO.
CP invests in its people and its assets to ensure it can provide
service safely and efficiently. CP has been the safest railway in
North America for 13 consecutive
years, as measured by train accident frequency and meets all
regulatory requirements.
The transaction is currently expected to close at the end of
2019 and remains subject to customary closing conditions. Over
the coming weeks, CP, FTAI and other stakeholders will move towards
closing.
About Canadian Pacific
Canadian Pacific is a
transcontinental railway in Canada
and the United States with direct
links to major ports on the west and east coasts. CP provides North
American customers a competitive rail service with access to key
markets in every corner of the globe. CP is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit cpr.ca to see
the rail advantages of CP. CP-IR
About Fortress Transportation and Infrastructure
Investors LLC
Fortress Transportation and Infrastructure
Investors LLC owns and acquires high quality infrastructure and
equipment that is essential for the transportation of goods and
people globally. FTAI targets assets that, on a combined basis,
generate strong and stable cash flows with the potential for
earnings growth and asset appreciation. FTAI is externally managed
by an affiliate of Fortress Investment Group LLC, a leading,
diversified global investment firm.
Note on forward-looking information
This news release contains certain forward-looking information
and forward-looking statements (collectively, "forward-looking
information") within the meaning of applicable securities laws.
Forward-looking information includes, but is not limited to,
statements concerning expectations, beliefs, plans, goals,
objectives, assumptions and statements about possible future
events, conditions, and results of operations or performance.
Forward-looking information may contain statements with words or
headings such as "financial expectations", "key assumptions",
"anticipate", "believe", "expect", "plan", "will", "outlook",
"should" or similar words suggesting future outcomes. This news
release contains forward-looking information relating, but not
limited to, the success of our business, our operations, priorities
and plans, anticipated financial and operational performance,
capital expenditures and the anticipated timing and success of the
CMQ transaction and its anticipated effect on CP and its
customers.
The forward-looking information contained in this news release
is based on each of CP and FTAI management's current expectations,
estimates, projections and assumptions, and CP having regard to
CP's experience and its perception of historical trends, and
includes, but is not limited to, expectations, estimates,
projections and assumptions relating to: foreign exchange rates,
effective tax rates, land sales and pension income; North American
and global economic growth; commodity demand growth; sustainable
industrial and agricultural production; commodity prices and
interest rates; performance of CP's assets and equipment;
sufficiency of CP's budgeted capital expenditures in carrying out
CP's business plan; CP's ability to complete its capital and
maintenance projects on the timelines anticipated; applicable laws,
regulations and government policies; the availability and cost of
labour, services and infrastructure; the fulfillment of closing
conditions for the CMQ transaction and the satisfaction by third
parties of their obligations to CP. Although CP and FTAI believe
the expectations, estimates, projections and assumptions reflected
in the forward-looking information presented herein are reasonable
as of the date hereof, there can be no assurance that they will
prove to be correct.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from those
expressed or implied by forward-looking information. By its nature,
CP's and FTAI's forward-looking information involves inherent risks
and uncertainties that could cause actual results to differ
materially from the forward looking information, including, but not
limited to, the following factors: changes in business strategies;
general North American and global economic, credit and business
conditions; risks associated with agricultural production, such as
weather conditions and insect populations; the availability and
price of energy commodities; risks associated with the CMQ
transaction, including the satisfaction of closing conditions; the
effects of competition and pricing pressures; industry capacity;
shifts in market demand; changes in commodity prices; uncertainty
surrounding timing and volumes of commodities being shipped via CP;
inflation; changes in laws, regulations and government policies,
including regulation of rates; changes in taxes and tax rates;
potential increases in maintenance and operating costs; changes in
fuel prices; uncertainties of investigations, proceedings or other
types of claims and litigation; labour disputes; risks and
liabilities arising from derailments; transportation of dangerous
goods; timing of completion of capital and maintenance projects;
currency and interest rate fluctuations; effects of changes in
market conditions and discount rates on the financial position of
pension plans and investments; trade restrictions or other changes
to international trade arrangements; climate change; and various
events that could disrupt operations, including severe weather,
such as droughts, floods, avalanches and earthquakes, and
cybersecurity attacks, as well as security threats and governmental
response to them, and technological changes. The foregoing list of
factors is not exhaustive. These and other factors are detailed
from time to time in reports filed by CP with securities regulators
in Canada and filed by CP and FTAI
in the United States, including
with the Securities and Exchange Commission. Reference should be
made to "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations - Forward-Looking
Information" in CP's and FTAI's annual and interim reports on Form
10-K and 10-Q.
The forward-looking information contained in this news release
is made as of the date hereof. Except as required by law, CP and
FTAI undertake no obligation to update publicly or otherwise revise
any forward-looking information, or the foregoing assumptions and
risks affecting such forward-looking information, whether as a
result of new information, future events or otherwise.
View original
content:http://www.prnewswire.com/news-releases/cp-to-acquire-central-maine--quebec-railway-from-ftai-300962506.html
SOURCE Canadian Pacific