The Greenbrier Cos., Inc., Lake Oswego, Ore., closed on the previously reported acquisition of a 19.5% ownership stake in Brazilian railcar manufacturer Amsted-Maxion Hortolandia for approximately $15 million. Greenbrier can acquire an additional 40.5% ownership interest, to be exercised no later than Sept. 30, 2017.
Amsted-Maxion Hortolandia will use Greenbrier's strategic investment to pay down outstanding debt and position the company for future growth. Amsted-Maxion Hortolandia is said to hold an estimated 70% annual market share in the South American railroad freight car market.
Amsted-Maxion, a 50/50 joint venture between Amsted Rail and Iochpe-Maxion, will continue to own the remaining 80.5% in Amsted-Maxion Hortolandia. In 2013, Greenbrier and Amsted-Maxion established a relationship in Brazil by entering into a licensing agreement related to the production of intermodal railcars designed by Greenbrier.
Greenbrier will provide its extensive capabilities in freight car design, engineering, manufacturing, marketing and sales and leasing. Amsted Rail will continue to provide highly engineered components and complete railcar chassis system solutions, including castings, bearings, wheels, axles and braking. Iochpe-Maxion, a publicly-held, Brazilian-based auto parts supplier, provides access to customer and supplier relationships, as well as insight into local and financial matters. By maximizing each of the partner's core abilities, Greenbrier expects Amsted-Maxion Hortolandia to achieve operational synergies and revenue enhancements that will make the strategic investment accretive to Greenbrier's earnings by the second half of 2016.