FreightCar America to buy Navistar Inc. rail-car plant

FreightCar America Inc. has agreed to purchase Navistar Inc.'s rail-car operations assets at its Shoals facility in Cherokee, Alabama.

Since 2013, FreightCar has subleased a large portion of the Shoals facility. As a result of the transaction, the company will become the sole tenant of the 2.2 million-square-foot plant, which was built for rail-car manufacture and repair.

"The opportunities afforded to us upon completion of the acquisition, together with the organizational changes and manufacturing best practices that we have already begun to implement, will significantly strengthen our long-term competitive positioning, reduce our costs and allow us to be more responsive to customer needs," said FreightCar President and Chief Executive Officer Jim Meyer in a press release.

Financial details of the purchase were not disclosed.

FreightCar also will purchase certain operating equipment and inventory at the plant, and receive a one-time upfront payment to cover future operating costs.