[ NOL Sells Stacktrain Service to Apollo for US$315 M... ]

NOL Sells Stacktrain Service to Apollo for US$315 Million Sale

NOL entered into a definitive agreement to sell its shares in its Nort
h American stacktrain business unit, Land Transport Services Inc.(LTS)
, for US$315 million to an affiliate of Apollo Management,L.P., a New
York-based investment firm, the two jointly announced March 17.
Apollo, which recently announced an equity investment in California-ba
sed Pacer International Inc., a North American intermodal service prov
ider, plans to operate the stacktrain business under its current name
“Land Transprt Services,” as a distinct entity with existing LTS man
agement and under the leadership of Donald C. Orris, who is also Chair
man and Chief Executive Officer of Pacer International. He was instrum
ental, beginning in 1984, in developing LTS when he was an APL executi
ve.
The shares in LTS are currently held by APL, the container shipping an
d logistics arm of NOL. The transaction value comprises US$292.5 milli
on payable upon closing plus an additional payment up to US$15 million
if LTS achieves a specific earnings target for financial year 1999. A
dditionally, APL will retain US$7.5 million in common stock of LTS.