Fortress Transportation and Infrastructure Investors LLC Announces the Acquisition of Transtar, LLC from United States Steel Corporation
NEW YORK [
June 8, 2021] - Fortress Transportation and Infrastructure Investors LLC (NYSE:FTAI) (the
“Company”) announced today that it has agreed to purchase
United States Steel Corporation (
“USS”)’s rail operating subsidiary, Transtar, LLC (
“Transtar”) for $640 million. The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions including receipt of certain
regulatory approvals.
Transtar is comprised of six operating freight railroads connected to USS’s largest production facilities. Of the six railroads, one serves Gary Works, USS’s
largest manufacturing plant and one serves Mon Valley Works, USS’s lowest cost facility in the flat-rolled segment. FTAI and USS also agreed to enter into an exclusive strategic rail partnership under which FTAI will provide rail service to USS for
an initial term of 15 years with minimum volume commitments for the first five years.
“FTAI is extremely excited to enter into this strategic rail partnership with USS as it allows us to significantly increase our rail business by providing
essential rail services to one of the preeminent integrated steel producers in North America under a long-term contractual arrangement. In addition, we believe we can grow the profits of the business through optimization of operations, addition of
third-party revenues from ancillary storage, switching and repair services and new developments at four other rail properties included in the transaction.
We also look forward to working with USS to develop and implement new practices and approaches which would improve the ESG profile of all operations,” said Joe
Adams, Chairman and CEO of FTAI.
Morgan Stanley and Barclays acted as financial advisors to FTAI and Sidley Austin LLP acted as legal advisors to FTAI.
Additional Information
Conference Call
The Company will host a conference call on Tuesday,
June 8, 2021 at 9:00 A.M. Eastern Time. The conference call may be accessed by dialing (
877) 447-5636 (from
within the U.S.) or (
615) 247-0080 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference
"FTAI’s Acquisition of Transtar." A simultaneous webcast of the conference call will be available to the public on a
listen-only basis at
www.ftandi.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this
press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements regarding (i) the agreement to purchase Transtar and to enter into a strategic rail partnership, including the ability to obtain all required approvals and consummate the transaction on a timely basis or at
all, (ii) Transtar’s future performance, including its ability to grow profits, (iii) the ability to develop and implement new practices and approaches and improve the ESG profile of all operations and (iv) statements regarding Transtar’s impact on
FTAI's business and future performance. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in
the forward-looking statements, many of which are beyond
the Company’s control.
The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any
forward-looking statements contained in this
press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled
“Risk Factors” and
“Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in
the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on
the Company’s
website (
www.ftandi.com). In addition, new risks and
uncertainties emerge from time to time, and it is not possible for
the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking
statements speak only as of the date of this
press release.
The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in
the Company's
expectations with regard thereto or change in events, conditions or circumstances on which any statement is based. This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
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.
For further information, please contact:
Alan Andreini
Investor Relations
Fortress Transportation and Infrastructure Investors LLC
