GATX Corp., Chicago, on Tuesday announced that it intends to sell GATX Terminals Corp., a wholly owned subsidiary specializing in the storage and distribution of bulk petroleum and chemical products.
Ronald H. Zech, chairman of GATX Corp., said the corporation wants to reallocate capital to its two high-return finance and service businesses, GATX Rail and GATX Capital.
GATX Terminals has assets totaling about $1 billion in book value, encompassing 17 wholly owned terminal facilities, ownership or interest in four refined product pipelines, and 11 joint ventures, said GATX.
GATX Terminals generated $294 million of gross income and $26 million of net income in 1999. The company has approximately 1,000 employees.
GATX anticipates reaching agreement with a purchaser during the second half of this year. It has retained Salomon Smith Barney Inc. and JP Morgan & Co. to serve as advisors in the sale process.