Trinity Industries, Inc., on Jan. 6 reported the acquisition of Holden America, a Montreal, Quebec-based producer of multi-level vehicle securement and protection systems, gravity-outlet gates, and gate accessories for freight rail, to support its autorack manufacturing business.
The transaction, which closed Dec. 30, 2022, included an initial purchase price of $70 million, with an additional minimum of $5 million per year for the next two years, according to Dallas, Tex.-based Trinity, which noted that acquiring Holden America provides it with a “market-leading” bi-level chock system. Along with Trinity’s existing tri-level chock system, it will allow the company to “take advantage of an improving automobile end market,” Trinity reported.
Trinity said it will retain all Holden employees.
“This acquisition fits well into our strategy to increase exposure to less cyclical and higher margin aftermarket parts, giving us more opportunities to serve our customers and diversify our revenue stream,” said Trinity President and CEO Jean Savage, who the League of Railway Women recently named 2022 Railway Woman of the Year. “Furthermore, as we see automobile preference move more toward SUVs and heavier electric vehicles, securement systems will become even more critical, and we look forward to being a market-leading chock provider and continuing to provide the quality and service that Holden’s customers have come to expect.”
In related developments, Trinity on Oct. 3, 2022 reported that it will supply a mix of 15,000 newly built tank and freight railcars to GATX through 2028, with GATX having an option to order up to 500 more railcars per year from 2023 to 2028. Additionally, Trinity in December 2021 wrapped up the $375 million sale of its highway products business to Rush Hour Intermediate II LLC, which is owned by an affiliated investment fund of Monomoy Capital Partners.