The Greenbrier Cos., Inc., Lake Oswego, Ore., acquired the manufacturing business of American Railcar Industries (ARI), St. Charles, Mo., from ITE Management LP, New York. These operations will be fully incorporated into Greenbrier's North American business model both from a manufacturing and commercial perspective.
Greenbrier's U.S. workforce totals approximately 4,000 people, including nearly 1,600 U.S. workers joining from ARI. Prior to the acquisition, Greenbrier's U.S. employment included manufacturing and corporate jobs in Oregon and employees located throughout the nation in leasing and services as well as wheels, repair and parts. Greenbrier adds two railcar manufacturing facilities in Paragould and Marmaduke, Ark., as well as manufacturing and administrative employees in St. Charles. It also adds other operations in Jackson and Kennet, Mo., and Longview, Texas, which produce a range of railcar components and parts. In addition, the newly-added operations provide Greenbrier domestic capacity that insulates it from uncertainties related to free trade in North America.
The combination provides Greenbrier a more complete product offering in tank cars and covered hoppers.
"Acquiring the manufacturing operations of ARI is a major milestone for Greenbrier,” says William Furman, chairman and CEO. “The transaction advances three of our strategic goals—strengthening our presence in the North American rail equipment market, growing at scale and developing a robust talent pipeline. This is Greenbrier's greatest expansion effort yet. We value the contributions of employees of both Greenbrier and ARI, our shared customers and other partners who have made this combination possible and who will help us continue to grow."
"We thank ITE for working with us on this transaction,” Furman adds. “Greenbrier looks forward to continuing its relationship with ITE as well as the other operating lessors and syndication partners we are honored to serve. With ITE's support, we are taking steps to ensure a smooth transition of the ARI manufacturing operations, including assistance from ITE partner and ARI former CEO, Jim Unger. John O'Bryan, the most recent president and CEO of ARI, joins Greenbrier as senior vice president of business development and integration, reporting to Alejandro Centurion, executive vice president and president of global manufacturing operations. O'Bryan's tenure at ARI and three decades of rail industry experience in operating and financial roles provides helpful continuity and strengthens our management team. Greenbrier manufacturing veteran Owen Whitehall will be directly responsible for oversight of all North American manufacturing facilities, also reporting to Centurion."