WLRoss-Greenbrier Rail Holdings, which was formed by WL Ross & Co., a private equity firm, and The Greenbrier Companies, announced Friday that it has acquired a lease portfolio of nearly 4,000 railcars valued at approximately $230 million.
The new company is owned by affiliates of WL Ross for the purpose of acquiring railcar assets to be managed by Greenbrier, which will receive management and other fees and incentive compensation tied to performance.
WLR–GBX said it intends to seek additional opportunities to acquire railcar lease portfolios.
William A. Furman,president and CEO of Greenbrier, said, “The formation of WLR–GBX and this portfolio acquisition are consistent with our stated strategy to use the WL Ross relationship with Greenbrier as a platform to pursue growth in less cyclical, higher margin, after-market opportunities. The pursuit of these opportunities through structured transactions, which Greenbrier helps originate and manage and in which WL Ross makes a direct investment, leverages our core competencies. The transaction will be accretive to earnings and presents the potential for the company to participate in significant upside.”
Wilbur L. Ross, Jr., chairman and chief executive officer of WL Ross, said, “The company is well-positioned for the expected rebound in demand for freight cars and the long-term growth resulting from rail’s fuel efficiency compared with motor freight.”