Published On : 2019-07-29
The manufacturing business of American Railcar Industries will be completely incorporated into Greenbrier’s North American business model.
The Greenbrier Companies, a US-based publicly traded transportation manufacturing corporation, has completed the acquisition of American Railcar Industries’ (ARI) manufacturing business from US investment firm ITE Management. Announced in April 2019, the acquisition involves full incorporation of the manufacturing business of ARI, a US manufacturer and maintainer of hopper and tanker railcars, into Greenbrier’s North American business model from a commercial as well as manufacturing viewpoint. Including ARI’s approximately 1,600 US workers, Greenbrier’s workforce strength in the US has increased to nearly 4,000 employees. Most importantly, the acquisition protects Greenbrier from free trade-related uncertainties in North America as the company gains domestic capacity with the addition of the new operations.
“For Greenbrier, the acquisition of ARI’s manufacturing operations is a major milestone. The acquisition advances three of our company’s strategic goals: development of a robust talent pipeline, growth at scale, and strengthening of Greenbrier’s presence in the rail equipment market of North America. This is our greatest expansion effort yet. Our company values the contributions of both ARI and Greenbrier’s employees, our shared customers, and other partners who will help us in continuing to grow and have made this combination possible,” said CEO of Greenbrier, William Furman.
ARI deal adds two Arkansas railcar manufacturing facilities for Greenbrier
The acquisition of ARI’s manufacturing business has allowed Greenbrier to add administrative and manufacturing employees in the US state of Missouri and a couple of railcar manufacturing spaces in the US state of Arkansas. Greenbrier’s manufacturing operations have been provided with improved vertical integration with the addition of a couple of other operations in the US states of Texas and Missouri.
“Greenbrier thanks ITE for working with it on this acquisition. Our company is looking ahead to continue its relationship with ITE and also other syndication partners and operating lessors Greenbrier is honored to serve,” said Furman.
In the North America freight railcar market, Greenbrier is said to have increased its design quality and leadership reputation with the acquisition of ARI’s manufacturing business. The acquisition has equipped Greenbrier with a more complete covered hoppers and tank cars product offering.
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