News & Reviews News Wire Greenbrier completes purchase of American Railcar’s manufacturing arm NEWSWIRE

Greenbrier completes purchase of American Railcar’s manufacturing arm NEWSWIRE

By Angela Cotey | July 29, 2019

| Last updated on November 3, 2020


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Greenbrier
LAKE OSWEGO, Ore — The Greenbrier Cos. today announced it completed its acquisition of the manufacturing business of American Railcar Industries from ITE Management LP on July 26, substantially consistent with the terms of the parties’ agreement reached in April. These operations will be fully incorporated into Greenbrier’s North American business model both from a manufacturing and commercial perspective.

Greenbrier’s U.S. workforce totals approximately 4,000 people, including nearly 1,600 U.S. workers joining from ARI. Prior to the acquisition, Greenbrier’s U.S. employment included manufacturing and corporate jobs in Oregon and employees located throughout the nation in Leasing & Services and Wheels, Repair & Parts. Greenbrier adds two railcar manufacturing facilities in Paragould and Marmaduke, Arkansas, as well as manufacturing and administrative employees in St. Charles, Missouri. It adds other operations in Jackson and Kennett, Missouri and Longview, Texas which produce a range of railcar components and parts, creating enhanced vertical integration for Greenbrier’s manufacturing operations. In addition to substantially increasing Greenbrier’s U.S.-based workforce, the newly added operations provide us domestic capacity that insulates Greenbrier from uncertainties related to free trade in North America.

The combination provides Greenbrier a more complete product offering in tank cars and covered hoppers through Greenbrier’s integrated business model. Operating lessors, shippers and railroads, all core to Greenbrier’s customer base, can now access Greenbrier’s broad range of railcar products through either direct sales or creative lease financing solutions, paired with a broad range of after-market services. Geographic expansion provides railcar customers a value proposition that drives efficiencies and lower costs, such as improved transportation options for finished products. The addition of the ARI manufacturing operations extends Greenbrier’s reputation in design leadership and quality in the North American freight railcar market.

William A. Furman, Chairman and CEO said, “Acquiring the manufacturing operations of ARI is a major milestone for Greenbrier. The transaction advances three of our strategic goals: strengthening our presence in the North American rail equipment market, growing at scale and developing a robust talent pipeline. This is Greenbrier’s greatest expansion effort yet. We value the contributions of employees of both Greenbrier and ARI, our shared customers and other partners who have made this combination possible and who will help us continue to grow.”

Furman added, “We thank ITE for working with us on this transaction. Greenbrier looks forward to continuing its relationship with ITE as well as the other operating lessors and syndication partners we are honored to serve. With ITE’s support, we are taking steps to ensure a smooth transition of the ARI manufacturing operations, including assistance from ITE Partner and ARI former CEO, Jim Unger. John O’Bryan, the most recent President and CEO of ARI, joins Greenbrier as Senior Vice President of Business Development and Integration reporting to Alejandro Centurion, Executive Vice President & President of Global Manufacturing Operations. O’Bryan’s tenure at ARI and three decades of rail industry experience in operating and financial roles, provides helpful continuity and strengthens our management team. Greenbrier manufacturing veteran Owen Whitehall will be directly responsible for oversight of all North American manufacturing facilities, also reporting to Centurion.”

— A Greenbrier Cos. news release. July 29, 2019.

2 thoughts on “Greenbrier completes purchase of American Railcar’s manufacturing arm NEWSWIRE

  1. I always had good experiences with the ARI folks when they built cars for us. I hope this change in ownership works out well for them and that Greenbrier resists any inclination to “fix what ain’t broke”.

    1. I hope so too, I done a lot of work on their cars and I also inspected their tank car repair facilities when I was a AAR COMPLIANCE INSPECTOR. GOOD TIMES AND I MEET SOME GOOD PEOPLE. I MISS IT
      BUT AFTER 30 YEARS IN THIS UNIQUE INDUSTRY, IT’S SOMEBODY ELSE’S TIME.

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