Greenbrier Companies

Greenbrier acquiring ARI

In a transaction valued at $400 million, the Greenbrier Companies, Inc. (GBRX) has entered into an agreement to acquire the manufacturing business of American Railcar Industries (ARI) from ITE Management LP (ITE), the hedge fund that bought ARI from investor Carl Icahn in December 2018. GBX said the result will be “a larger U.S. railcar manufacturing footprint, adding ARI’s two manufacturing facilities in Arkansas. It will employ more U.S. workers at cost-competitive and flexible facilities, with a more-efficient delivery model throughout North America, due to lower transportation costs.”

Tank railcar market continues to evolve

Financial Edge, September 2018: According to the good people at Railinc (a perennial speaker at the annual Rail Equipment Finance Conference, www.railequipmentfinance.com), as of July 1, 2018, 12,581 tank railcars had been retrofit to the DOT117R standard. In the first seven months of 2018, 5,349 tank railcars were retrofit (an average of 764 per month). If retrofits continue at the same pace for the remainder of the year, the total number of retrofit cars completed in 2018 would be more than double the total number of retrofits completed by the end of 2017.

Greenbrier names Tekorius COO

The Greenbrier Cos. Inc. Executive Vice President and Chief Financial Officer Lorie Tekorius has been appointed EVP and Chief Operating Officer, a newly created position with expanded responsibilities, reporting to Chairman, President and CEO William A. Furman.

GBW Railcar Services uncouples

The Greenbrier Cos. Inc. and Watco Cos. LLC have agreed to discontinue their GBW Railcar Services (GBW) railcar repair joint venture, formed in 2014 by combining their shops into a nationwide network of railcar repair facilities. Under the agreement, the repair shops and employees at each location will return to management by their previous operators.

Greenbrier enters Turkish railway market

The Greenbrier Companies, Inc. has entered the growing freight rail market in Turkey with a majority stake in railcar manufacturer Rayvag Vagon Sanayi ve Ticaret A.S. (Rayvag). Greenbrier believes there are growing opportunities for private operators to access freight rail in Turkey, as the country “offers a key rail transportation connection between Asia and Europe,” and “transcontinental rail shipments through Turkey create a need for European rail standards, favoring Greenbrier’s leadership in design and manufacturing.”