The Greenbrier Companies, Inc. (GBRX) recently completed its acquisition of the manufacturing business of American Railcar Industries (ARI) from ITE Management LP (ITE).
The deal was completed “substantially consistent with the terms of the parties’ agreement reached in April,” which was valued at $400 million. The terms also say that GBRX will gain two ARI railcar-manufacturing facilities in Arkansas as well as manufacturing and administrative employees in St. Charles, Mo. It adds other operations in Jackson and Kennet, Mo., and Longview, Texas, which produce a range of railcar components and parts, build hopper car outlets, tank car valves, axles, castings and railcar running boards, among other ancillary railcar products.
GBRX noted that the operations will be fully incorporated into its North American business model “both from a manufacturing and commercial perspective.” The company added that its U.S. workforce totals approximately 4,000 people, including nearly 1,600 U.S. workers joining from ARI.
“Acquiring the manufacturing operations of ARI is a major milestone for Greenbrier,” said GBRX Chairman and CEO William A. Furman. “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.”
“We thank ITE for working with us on this transaction,” Furman continued. “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.”