Greenbrier picking up ARI manufacturing business

The acquisition will give Greenbrier two manufacturing facilities in Arkansas and five additional operations that provide a range of railcar components and supplies.

Greenbrier picking up ARI manufacturing business

The acquisition will give Greenbrier two manufacturing facilities in Arkansas and five additional operations that provide a range of railcar components and supplies.

Greenbrier picking up ARI manufacturing business

The acquisition will give Greenbrier two manufacturing facilities in Arkansas and five additional operations that provide a range of railcar components and supplies.

 

   The Greenbrier Companies announced Thursday it has agreed to purchase the manufacturing business of American Railcar Industries (ARI) from ITE Management LP (ITE) for $400 million, after adjustments for net tax benefits
    The gross purchase price totals $430 million, which includes $30 million for capital expenditures on railcar lining operations and facility improvements at ARI and $50 million in convertible notes issues by Greenbrier to ARI. The balance of the gross purchase price is cash consideration, and the transaction is expected to close this calendar year, Greenbrier said.
    Greenbrier, headquartered in Lake Oswego, Ore., will acquire two manufacturing facilities in Arkansas and five other operations that provide a range of railcar components and parts supply.
    “These operations build hopper car outlets, tank car valves, axles, castings and railcar running boards, among other ancillary railcar products,” said Greenbrier, an international supplier of equipment and services to the freight market, in a statement. “Significant manufacturing efficiencies and cost savings are expected from the acquisition, along with a skilled workforce and geographic advantages throughout North America.”

   The acquisition is expected to strengthen Greenbrier’s core North American product base; enhance its production footprint; provide new cost-saving opportunities; increase railcar offerings; and broaden its customer base.
    “With a broader product portfolio and efficiencies extending from a larger operations base in America, we see this acquisition as a unique opportunity for Greenbrier to extend its position as a global leader in railcar manufacturing, with an increase in our total U.S.-based production and an expansion of our American-based workforce,” Greenbrier Chairman and CEO William Furman (pictured above) said in a statement. “We are especially pleased to work with ITE on this acquisition, since we already enjoy a strong relationship with them as a valued syndication customer.”
    ITE purchased ARI in December.

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Greenbrier picking up ARI manufacturing business

The acquisition will give Greenbrier two manufacturing facilities in Arkansas and five additional operations that provide a range of railcar components and supplies.

Apr 18, 2019 on Dec 27, 2018AmericanShipper.com

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Greenbrier picking up ARI manufacturing business

The acquisition will give Greenbrier two manufacturing facilities in Arkansas and five additional operations that provide a range of railcar components and supplies.

Apr 18, 2019 on Dec 27, 2018AmericanShipper.com