LAKE OSWEGO, Ore. — Railcar manufacturer The Greenbrier Companies has agreed to purchase American Railcar Industries from its current owner, ITE Management.
Press releases at 6 a.m. EDT from Greenbrier and ITE to announce the deal say Greenbrier will buy American Railcar for $430 million in cash and convertible debt. ITE had completed purchasing American Railcar and taking it private just five months ago, on Dec. 5, 2018.
The acquisition means Greenbrier will add two manufacturing facilities in Arkansas, as well as five other operations that manufacture components including hopper car outlets, tank car valves, axles, castings, running boards and other products.
“We see this acquisition as a unique opportunity for Greenbrier to extend its position as a global leader in railcar manufacturing,” Chairman and CEO William A. Furman said in a press release, “with an increase in our total U.S.-based production and an expansion of our American-based workforce. 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.”
The deal is subject to regulatory review before closing.
Wonder if they plan on keeping ARI’s railcar lineup. Having a historic line such as centerflow hopper becoming part of Greenbrier should be interesting
Mike it appears you will be in good shape. Greenbrier needs the additional capacity. I’m just curious as too if Greenbrier will sell off ARI railcar designs, as their current lineup covers the spectrum from tank to well car.
We locally can only hope to see fruition of the following excerpt of a news release from Greenbrier…….
…….”The gross purchase price of the manufacturing business totals $430 million. Included in the gross purchase price is $30 million for capital expenditures on railcar lining operations and other facility improvements at ARI. ” ……..
If Greenbrier will spend money to make improvements, surely it will not mean a demise of plants here Paragould. endmrw0418191505
I sure hope these plants keep operating, the hopper car plant is here in my hometown. The tank car plant is just 15 miles north. If this is a buy and dump, it will sure hit us hard here in Northeast Arkansas endmrw0418191447