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CSX Corp. recently agreed to sell a majority stake in CSX Lines L.L.C. to global private equity firm The Carlyle Group for $300 million.


The transaction, which is subject to customary conditions and regulatory approvals, is expected to close in first-quarter 2003.


CSX would receive $240 million in cash and $60 million in securities issued by The Carlyle Group.


The equity firm plans to retain CSX Lines President and Chief Executive Officer Charles Raymond and his management team. Raymond also will serve as chairman of the ocean shipping company, which The Carlyle Group plans to rename Horizon Lines L.L.C.


"This transaction is consistent with our long-stated strategy of becoming a more rail-based organization, [and] strengthens our balance sheet and provides shareholders with significant value," said CSX President Michael Ward in a prepared statement.


The Carlyle Group officials believe CSX Lines, which serves Alaska, Hawaii, Puerto Rico and Guam, complements the company's growing transportation portfolio.