Greenbrier has completed the acquisition of the manufacturing business of American Railcar Industries (ARI) from ITE Management, an affiliate of ITE Rail Fund.
As part of the agreement first announced in April, Greenbrier paid a total of $430m for the business.
The purchase price includes an investment of $30m in ARI’s railcar lining operations and other facility improvements.
Both from a manufacturing and commercial perspective, the acquired business will be entirely merged into Greenbrier’s North American business model.
The deal adds 1,600 workers to Greenbrier’s US workforce, bringing its total headcount to approximately 4,000 people.
Greenbrier CEO William Furman said: “Acquiring the manufacturing operations of ARI is a major milestone for Greenbrier. The transaction advances three of our strategic goals: strengthening our presence in the North American rail equipment market, growing at scale and developing a robust talent pipeline.
“This is Greenbrier’s greatest expansion effort yet. We value the contributions of employees of both Greenbrier and ARI, our shared customers and other partners who have made this combination possible and who will help us continue to grow.”
In addition to the existing operation, the acquisition adds two railcar manufacturing facilities in Paragould and Marmaduke, Arkansas.
It also acquires operations in Jackson and Kennett in the state of Missouri and Longview in Texas, which produces railcar components and parts.
As part of the deal, ARI’s most recent president and CEO John O’Bryan joined Greenbrier as senior vice-president of Business Development and Integration.
He will report to Alejandro Centurion, executive vice-president and president of global manufacturing operations.
Furman added: “O’Bryan’s tenure at ARI and three decades of rail industry experience in operating and financial roles, provides helpful continuity and strengthens our management team.
“Greenbrier manufacturing veteran Owen Whitehall will be directly responsible for oversight of all North American manufacturing facilities, also reporting to Centurion.”
