Greenbrier said the deal will “diversify” its manufacturing presence in North America by enabling the company to provide its North American customers, which include the Class I railroads and shortlines, shippers and railcar lessors, with complementary and supplementary car component offerings. The deal will include the acquisition of two railcar manufacturing facilities in Arkansas and five other operations that supply parts such as hopper car outlets, tank car valves, axles, castings and railcar running boards.
The acquisition, which is subject to regulatory review, is expected to close sometime this year.
Greenbrier’s acquisition comes as the company seeks to provide railcars that work well with the precision scheduling railroading (PSR) model that has been adopted by all the Class I railroads except BNSF (NYSE: BRK). PSR is an operating tool in which railroads deploy railcars on a fixed schedule.