Today, Canadian National Railway Co. announced it sold all the stock of subsidiary CANAC Inc. to Savage Cos. Expected to close April 30, the transaction includes CANAC's U.S. and Canadian industrial rail operations, planning and infrastructure engineering services, and railway training and international services.
CN will retain ownership of CANAC's remote-control division — which supplies BELTPACK™ and remote-control locomotive products — and rename it BELTPACK Corp. The remaining subsidiary will continue to serve North American and international markets with existing staff.
"The creation of BELTPACK Corp. will ensure CN ownership of the technologically advanced BELTPACK family of remote-control products that have become a mainstay of the North American railroad industry," said Claude Mongeau, CN executive vice president and chief financial officer, and CANAC chairman, in a prepared statement.
Salt Lake City, Utah-based Savage Cos. operates bulk terminals for coal, petroleum coke and sulphur in 26 states and two Canadian provinces that serve the railroad, oil refining, chemical, coal production and electric power-generation industries.
"With this purchase, we look forward to serving existing and new customers in the rail operations, rail planning and training services areas for which CANAC is widely recognized in its approach to safety, productivity and performance," said Savage Cos. President and Chief Executive Officer Allen Alexander. "This acquisition accelerates our growth in these railway sectors and provides a strong base for our increased presence in the important Canadian market."
Source: Progressive Railroading Daily News
