Greenbrier ups stake in LatAm car builder

The Greenbrier Companies announced it completed its investment in Brazil-based Amsted-Maxion Equipamentos E Serviços Ferroviários S.A.

The transaction, which was finalized on April 28, increased Greenbrier’s direct ownership position in Greenbrier-Maxion from 19.5% to 60%.

Located in Hortolândia near São Paolo, Brazil, the company said Greenbrier-Maxion is the leading South American railcar manufacturer with over 70% share of new railcar production in Brazil.

Greenbrier-Maxion also offers railcar overhaul and refurbishment of the Brazilian fleet, of which 60% is 30 years old or older.

Greenbrier, based in Lake Oswego, Ore., has also increased its ownership stake in Amsted-Maxion Cruzeiro from 19.5% to 24.5%. The company manufactures castings and components for railcars and other heavy industrial equipment.

The latter has a 40% ownership position in Greenbrier-Maxion.

Greenbrier’s increased ownership position in Amsted-Maxion Cruzeiro also provides the company an additional 10% indirect ownership interest in Greenbrier-Maxion.

Amsted-Maxion Cruzeiro is affiliated with Chicago-based Amsted Rail, a manufacturer of railcar bogie and component systems, and Iochpe-Maxion S.A., a global auto parts supplier based in Brazil.

“Greenbrier-Maxion, with strong leadership and access to innovations from its U.S. investors, Greenbrier and Amsted, is well-positioned to provide leading railcar manufacturing, design and aftermarket services to Brazil, other Latin American markets, and beyond,” said William A. Furman, Chairman and CEO of Greenbrier..”

The majority ownership in Greenbrier-Maxion makes Greenbrier the largest freight railcar builder in South America. It is currently the second-largest freight railcar builder in North America.

The company also said that upon the closing of its Greenbrier-Astra Rail transaction, expected soon, Greenbrier will be the largest freight railcar builder in Europe, and in total puts Greenbrier among the largest freight railcar builders in the world, serving customers in North America, Latin America, Europe, as well as nations of the Gulf Cooperation Council, Africa, and Eurasia.