CN expanding its North American rail intermodal supply chain services with the acquisition of H&R Transport's intermodal division

Globe Newswire 9-May-2019 8:01 AM

MONTREAL, May 09, 2019 (GLOBE NEWSWIRE) -- CN (TSX:CNR) (NYSE:CNI), through a subsidiary company, has reached an agreement to acquire the intermodal division of the Alberta-based H&R Transport Limited.

"H&R is well known in Alberta and across the industry for investing in its people, systems, and assets, as well as its customer centric services and best in class operations, all of which is aligned with CN's strategy to expand our presence in moving consumer goods," said JJ Ruest, president and chief executive officer of CN. "With the growing consumer economy requiring more sophisticated transportation solutions, CN's strategy is to offer more end to end rail supply chain solutions to a wider range of customers."

"The Foder Family was instrumental in establishing this customer focused orientation throughout the history of H&R and we look forward to continuing to provide exceptional service as part of the CN Family," added David Thiessen, chief executive officer of H&R. 

"CN recognizes the role of the Foder Family who acquired H&R in the early 1950s and worked to grow the original two tractor operation based in Lethbridge, Alberta," said Keith Reardon, CN's senior vice-president of consumer products and supply chain growth. "We have a longstanding relationship with H&R Transport. As a cross country supply chain partner, we know that their continued investments in technology and in their employees has earned them a very enviable reputation."

The transaction is subject to customary closing conditions.

Forward-Looking Statements
Certain statements included in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward looking statements may be identified by the use of terminology such as "believes," "expects," "anticipates," "assumes," "outlook," "plans," "targets," or other similar words.

Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company to be materially different from the outlook or any future results or performance implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements include, but are not limited to, the risk that the H&R Transport transaction, which is subject to closing conditions, not be completed, as well risk factors such as the effects of general economic and business conditions; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments; compliance with environmental laws and regulations; actions by regulators; increases in maintenance and operating costs; security threats; reliance on technology; trade restrictions; transportation of hazardous materials; various events which could disrupt operations, including natural events such as severe weather, droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings or other types of claims and litigation; risks and liabilities arising from derailments; timing and completion of capital programs; and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to Management's Discussion and Analysis (MD&A) in CN's annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN's website, for a description of major risk factors.

Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

CN is a true backbone of the economy transporting more than C$250 billion worth of goods annually for a wide range of business sectors, ranging from resource products to manufactured products to consumer goods, across a rail network of approximately 20,000 route-miles spanning Canada and mid-America. CN – Canadian National Railway Company, along with its operating railway subsidiaries – serves the cities and ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth, Minn./Superior, Wis., and Jackson, Miss., with connections to all points in North America. For more information about CN, visit the company's website at www.cn.ca.