June 7, 2006
GATX unit buys Oglebay Norton lakers
American Steamship Company (ASC), a unit of GATX Corporation (NYSE:GMT), today announced that it has acquired the majority of the vessels of the fleet of Oglebay Norton Marine Services Company L.L.C.
Oglebay Norton announced last month that it had signed a definitive agreement to sell the vessels.
The six vessels acquired by ASC, for a purchase price of $120 million, are the M/V Oglebay Norton (built 1978), the M/V Columbia Star (1981), the S/S Armco (1953), the S/S Middletown (1943), the S/S Courtney Burton (1953), and the M/V Fred R. White (1979).
ASC has been operating on the Great Lakes since 1907 and was purchased by GATX in 1973. ASC transports a variety of dry bulk commodities including iron ore pellets, coal, and limestone aggregates. Following this acquisition of these six vessels, ASC will operate a fleet of 18 vessels, the largest U.S.-flag fleet on the Great Lakes.
Jerome K. Welsch, president and CEO of ASC, said "This is an excellent opportunity to expand and diversify our fleet, enabling ASC to continue to provide the reliable and flexible service that our customers have come to expect from us for nearly 100 years."
Brian A. Kenney, chairman and CEO of GATX Corporation, said, "This transaction represents continued execution of our strategy to acquire long-lived, widely-used assets at an attractive price, wrapping valuable services around those assets."