Today, Trinity Industries Inc. announced it signed a memorandum of understanding to sell the company’s European rail-car manufacturing subsidiary to a Luxembourg firm. The buyer and terms weren’t disclosed.
Trinity Rail GmbH builds freight cars, including intermodal and tank cars, for the European rail market. Trinity officials expect to close the transaction within 45 days.
“Completing this transaction allows us to dedicate more of our resources and assets to the opportunities we have in North America,” said Trinity Chairman, President and Chief Executive Officer Timothy Wallace in a prepared statement. “However, if this transaction does not close as anticipated, we are fully committed to waiting out the recovery of the rail-car market in Europe. We have taken steps to reduce our costs and are currently building a better backlog of orders.”
Trinity builds and leases rail cars, and produces inland barges, construction products and energy equipment.
Source: Progressive Railroading Daily News
