(The Kansas City Star posted the following article on its website on November 3.)
KANSAS CITY — Kansas City Southern today said its Kansas City Southern Railway Co. unit and a Mexican affiliate have purchased 75 SD70MAC locomotives from El-Mo-Mex Inc. for $32.625 million plus the assumption of approximately $95.9 million in debt and accrued interest.
The railroad plans to sell all of the locomotives to an unaffiliated third party and enter into a long-term, leveraged lease of the locomotives.
“This transaction is another step toward making KCS’ U.S. and Mexican operations more efficient, reducing costs and taking advantage of economies of scale,” KCS Chairman, President and Chief Executive Officer Michael R. Haverty said in a news release.
In morning trading on the New York Stock Exchange, Kansas City Southern shares were up 29 cents, or 1.24 percent, at $23.64. Shares have traded in a 52-week range of $16.05 to $24.03.