Greenbrier increases stake in Brazilian railcar manufacturer Greenbrier-Maxion
The Greenbrier Companies has completed a previously announced agreement to increase its stake in Brazil-based Amsted-Maxion Equipamentos E Serviços Ferroviários (Greenbrier-Maxion).
Greenbrier's direct ownership position in Greenbrier-Maxion has increased from 19.5% to 60% following the transaction. A $20m investment by Greenbrier is planned to be used to retire debt at Greenbrier-Maxion, thereby reducing interest payments by $4m a year.
Greenbrier chairman and CEO William Furman said: “We are pleased to grow our presence in the emerging Latin American rail market with an increased stake in Greenbrier-Maxion and Amsted-Maxion Cruzeiro as we extend our partnership with Amsted Rail and Iochpe-Maxion.
“Greenbrier-Maxion, with strong leadership and access to innovations from its US investors Greenbrier and Amsted, is well-positioned to provide leading railcar manufacturing, design and aftermarket services to Brazil, other Latin American markets and beyond.”
Greenbrier-Maxion holds nearly 70% share of new railcar production in the country. It also provides railcar overhaul and refurbishment services.
Greenbrier has also increased its ownership stake from the existing 19.5% to 24.5% in Amsted-Maxion Cruzeiro, which manufactures various castings and components for railcars and other heavy industrial equipment.
The increased ownership position provides Greenbrier a further 10% indirect ownership interest in Greenbrier-Maxion.
Greenbrier is a supplier of equipment and services to freight rail transportation markets, designs, builds and markets freight railcars in North America and Europe.
The company’s worldwide reach allows it to access railcar markets throughout North America, Latin America as well as across Europe.