Columbus, Ohio-based Cathcart Rail has signed an agreement to purchase The Andersons’ railcar repair business. The deal is expected to close this summer; terms were not disclosed.
It is also part of The Andersons’ “strategic decision” to jettison railcar interests and focus on agricultural businesses, which include commodity trading, ethanol and plant nutrient sectors. In August 2021, The Andersons sold its railcar leasing business to American Industrial Transport, Inc. (AITX), and reported that it would sell its railcar repair business, including 29 U.S. facilities.
“The Andersons’ railcar repair network aligns perfectly with Cathcart Rail’s strategic goal of offering a broad array of rail services across a national footprint,” said Casey Cathcart, Chairman and CEO of Cathcart Rail, whose Belpre Industrial Parkersburg Railroad received a Short Line of the Year Honorable Mention from Railway Age in 2021. “With the addition of The Andersons railcar repair network, Cathcart Rail’s nearly 1,000 employees across 100-plus locations make it the leading railcar services company in the country.”
The railcar repair business sale “further strengthens our balance sheet and should enhance shareholder returns,” The Andersons President and CEO Pat Bowe said. “Finalizing the sale of our railcar repair business will complete our exit from our rail segment.”
“Our railcar repair employees are among the most skilled and experienced in the railcar industry, and they have been critical to our success,” said Joe McNeely, President of The Andersons Nutrient and Industrial business. “We deeply value their contributions and thank them for their commitment to The Andersons, and we are determined to make their transition to Cathcart Rail as smooth as possible.”