Greenbrier acquires parts of American Railcar; ARCI reports higher Q2 rail-car orders, deliveries

The Greenbrier Cos. has completed its acquisition of the rail-car and components manufacturing businesses of American Railcar Industries (ARI) from ITE Management LP, the companies announced today.

The asset acquisition is valued at about $430 million and consisted of cash and convertible debt, according to an ITE press release.

ITE completed the acquisition and take-private of ARI on Dec. 5, 2018. ARI will continue to own the maintenance and repair and servicing businesses as part of an integrated platform to serve ITE’s portfolio of nearly 30,000 rail cars, company officials said.

The acquisition broadens Greenbrier's design capabilities and expands its portfolio in tank cars and covered hopper cars. Greenbrier plans to integrate ARI facilities and team into Greenbrier's manufacturing and commercial operations, Greenbrier officials said in a notice to customers.

Meanwhile, the industry's rail-car orders in second-quarter 2019 totaled 11,754 units, a 22 percent increase from first-quarter orders but a 50 percent decrease compared with orders during second-quarter 2018, according to statistics from the Railway Supply Institute's American Railway Car Institute Committee (ARCI).

Second-quarter 2019 deliveries came in at 15,623 units, 19 percent higher than first-quarter deliveries and 19.5 percent higher than orders in second-quarter 2018.

A backlog of all rail-car types remained at 69,227 units — down from the backlog of 73,076 units at the end of first-quarter 2019.