Greenbrier To Buy Manufacturing Units Of American Railcar Industries

(RTTNews) - The Greenbrier Companies, Inc. (GBX) said it has agreed to acquire the manufacturing business of American Railcar Industries from ITE Management LP in a deal valued at $400 million. Headquartered in St. Charles, Missouri, American Railcar Industries has two manufacturing facilities in Arkansas.

The deal, which is expected to close in calendar 2019, will be accretive to adjusted earnings per share by more than 20% during the first 12 months.

"We expect the acquisition to be meaningfully accretive and position Greenbrier for growth in our core manufacturing and engineering business in North America. Cost synergies and economies of scale are expected to benefit our customers, including shippers, leasing companies and North American railroads," said William Furman, CEO.