Interesting development. What does it all mean? Savage Companies? Beltpack excluded?
CN sells CANAC Inc. subsidiary to Savage Companies
CN retains ownership of BELTPACK®technology
MONTREAL, April 27, 2004 - CN announced today the sale of 100 per
cent of the stock of its St. Laurent, Que.-based CANAC Inc.
subsidiary to Savage Companies of Salt Lake City, Utah. The
transaction, which is expected to close by April 30, 2004, will
include CANAC's industrial rail operations in Canada and the
United States, its planning and infrastructure engineering services,
as well as railway training and international services.
Excluded from the transaction is CANAC's Remote Control Division,
which produces BELTPACK® and other locomotive remote control
products. This group will be renamed BELTPACK Corporation and remain
a CN subsidiary. It will continue to serve the North American and
international markets with existing staff from its current
locations.
Claude Mongeau, executive vice-president and chief financial
officer, CN, and chairman of the board of CANAC, said: "CN is
very pleased with this transaction, which positions CANAC's core
businesses for continued growth under Savage Companies'
ownership.
This is good news for CANAC's employees and customers. At the
same time, the creation of BELTPACK Corporation 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."
Allen B. Alexander, president and chief executive officer of Savage
Companies, said: "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. This acquisition
accelerates our growth in these railway sectors and provides a
strong base for our increased presence in the important Canadian
market. We will continue to provide "Best Value-No Worry"
service to our customers and are enthusiastic about the prospect of
including in our growing operations the expertise and experience of
a quality-based organization like CANAC."
Since 1971, CANAC has been a recognized provider of high-quality
services for the rail industry, including industrial rail operations
in over 32 locations in the United States and Canada. Through its
planning and engineering group, CANAC provides rail infrastructure,
engineering, capacity planning, signaling and other consulting
services. It is an industry leader in innovative railway training
services. Its international services group is involved in
development and operating services for rail operations and
rehabilitation projects overseas directly and through joint ventures
and operating agreements.
Savage is a leader in providing services to its customers in oil
refining, chemicals, coal production, electric power generation and
the rail industry including, among others, operating large bulk
terminals for coal, petroleum coke and sulphur. Savage operates in
26 U.S. states and two Canadian provinces.
Canadian National Railway Company spans Canada and mid-America, from
the Atlantic and Pacific oceans to the Gulf of Mexico, serving the
ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New
Orleans, and Mobile, Ala., and the key cities of Toronto, Buffalo,
Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis.,
Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with
connections to all points in North America.
Contacts:
CN
Mark Hallman
(905) 669-3384
Savage Companies
David Wolach
(801) 944-6600
10:53:25 AM 
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