CHICAGO, Nov. 30 /PRNewswire/ -- GATX Corporation (NYSE: GMT) today
announced that it signed an agreement to sell GATX Terminals Corporation's
domestic terminal and pipeline operations to Kinder Morgan Energy Partners
L.P. for approximately $1.15 billion. The purchase price includes
approximately $1.0 billion in cash plus the assumption of external debt and
certain liabilities. The transaction is expected to close in the first
quarter of 2001, subject to standard conditions. GATX expects net after-tax
proceeds from the sale to be in the range of $700 million.
This transaction represents the major step in GATX's previously announced
plan to sell GATX Terminals Corporation. The domestic operations constitute
most of GATX Terminals' asset and franchise value. The sale of GATX
Terminals' remaining businesses, including foreign operations and joint
ventures, is expected to be completed in separate transactions during 2001.
GATX anticipates that upon final resolution of critical issues such as
expected proceeds from the sale of GATX Terminals' foreign operations and
joint ventures, remaining debt obligations previously allocated to GATX
Terminals, the appropriate capital structure for GATX, and investment
opportunities in its higher return finance businesses, it will announce plans
for the use of proceeds.
Ronald H. Zech, chairman of GATX Corporation, stated, "This is an
extremely important step in the planned sale of GATX Terminals Corporation.
As an experienced leader in the storage and distribution of petroleum
products, Kinder Morgan Energy Partners is well positioned to capitalize on
GATX Terminals' strong domestic operations. We will work diligently to ensure
a smooth closing and transition process. GATX has undertaken a significant
and major transformation in the past year, and we are now uniquely positioned
to aggressively pursue opportunities in our higher return finance businesses."
COMPANY DESCRIPTION
GATX Corporation (NYSE: GMT) is a unique finance and leasing company
combining asset knowledge and services, structuring expertise, creative
partnering and risk capital to serve customers and partners worldwide. GATX
primarily focuses on leasing assets that include railroad cars and
locomotives, jet commercial aircraft, and technology and marine assets.
FORWARD LOOKING STATEMENTS
This press release includes statements which may constitute
forward-looking statements made pursuant to the safe harbor provision of the
Private Securities Litigation Reform Act of 1995. This information may
involve risks and uncertainties that could cause actual results to differ
materially from the forward-looking statements. Although the company believes
that the expectations reflected in such forward-looking statements are based
on reasonable assumptions, such statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
projected.
Investor, corporate information and press releases may be found at
http://www.gatx.com . A variety of current financial information, historical
financial information, press releases and photographs are available at this
site. GATX press releases may be obtained by automated PR News Company News
On-Call's automated fax service at 800-758-5804. The company identification
number for GATX is 105121.
SOURCE GATX Corporation
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http://www.gatx.com
Company News On-Call:
http://www.prnewswire.com/comp/105121.html or fax,
800-758-5804, ext. 105121
CONTACT:
Robert C. Lyons, Director of Investor
Relations of GATX Corporation, 312-621-6633
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