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Rail News: M&A
3/27/2006
Rail News: M&A
American Railcar Industries arranges deal to acquire Custom Steel's stock
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American Railcar Industries Inc. (ARI) recently reached an agreement to acquire the stock of Custom Steel Inc. for about $18 million, including $5 million for the company’s inventory.
A Steel Technologies Inc. subsidiary, Custom Steel provides rail-car parts to ARI and operates a manufacturing facility adjacent to ARI’s Kennett, Mo., car component plant.
The transaction is expected to close on or about April 1 pending customary closing conditions.
“The addition of this facility to our rail-car manufacturing business increases the percentage of rail-car parts that are manufactured by [our] company,” said ARI Chief Executive Officer James Unger in a prepared statement.
ARI — which in January completed an initial public offering of 9.77 million shares of common stock — builds covered hoppers and tank cars, repairs and refurbishes freight cars, provides fleet management services, and designs and manufactures rail-car and industrial components.
A Steel Technologies Inc. subsidiary, Custom Steel provides rail-car parts to ARI and operates a manufacturing facility adjacent to ARI’s Kennett, Mo., car component plant.
The transaction is expected to close on or about April 1 pending customary closing conditions.
“The addition of this facility to our rail-car manufacturing business increases the percentage of rail-car parts that are manufactured by [our] company,” said ARI Chief Executive Officer James Unger in a prepared statement.
ARI — which in January completed an initial public offering of 9.77 million shares of common stock — builds covered hoppers and tank cars, repairs and refurbishes freight cars, provides fleet management services, and designs and manufactures rail-car and industrial components.
