LAKE OSWEGO, Ore., May 6, 2015 /PRNewswire/
-- The Greenbrier Companies, Inc. (NYSE:GBX) today
announced that it has closed on the previously reported acquisition
of a 19.5% ownership stake in Amsted-Maxion Hortolandia, the
leading railcar manufacturer in South
America, for approximately $15
million. Greenbrier has an option to acquire an
additional 40.5% ownership interest, to be exercised no later than
September 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 holds an
estimated 70% annual market share in the South American new
railroad freight car market. Market demand in Brazil is forecast to exceed approximately
4,000 new railcars annually for the near term and potentially
through the end of this decade. Longer term new railcar
demand is expected to increase significantly in Brazil, the world's 7th largest
economy measured by GDP. This demand is expected to be driven
by both its extensive investment in infrastructure, including plans
to expand and modernize the Brazilian railway network, and an aging
railcar fleet where more than 60% of rail freight rolling stock is
30 years or older and less efficient than the railcar design
technology available today.
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.
Amsted-Maxion Hortolandia will provide an unparalleled value
proposition to its customers utilizing the combined strengths of
its three partners. Greenbrier will provide its extensive
capabilities in freight car design, engineering, manufacturing,
marketing and sales, and leasing to the business. Amsted Rail
will continue to provide its highly engineered components including
castings, bearings, wheels, axles and braking - complete
railcar chassis system solutions. Iochpe-Maxion, a prominent,
publicly-held, Brazilian-based auto parts supplier to the global
market, 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 will achieve operational synergies and
revenue enhancements that will make the strategic investment
accretive to Greenbrier's earnings by the second half of 2016.
About Greenbrier
Greenbrier, (www.gbrx.com), headquartered in Lake Oswego, Oregon, is a leading supplier of
transportation equipment and services to the railroad industry.
Greenbrier builds new railroad freight cars in our 4 manufacturing
facilities in the U.S. and Mexico
and marine barges at our U.S. manufacturing facility.
Greenbrier also sells reconditioned wheel sets and provides
wheel services at 9 locations throughout the U.S. We
recondition, manufacture and sell railcar parts at 4 U.S.
sites. Greenbrier is a 50/50 joint venture partner with Watco
Companies, LLC in GBW Railcar Services, LLC which repairs and
refurbishes freight cars at 33 locations across North America, including 13 tank car repair
and maintenance facilities certified by the Association of American
Railroads. Greenbrier builds new railroad freight cars and
refurbishes freight cars for the European market through our
operations in Poland. Greenbrier
owns approximately 8,300 railcars, and performs management services
for approximately 241,000 railcars.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995: This press release may contain
forward-looking statements, including statements regarding expected
new railcar production volumes and schedules, expected customer
demand for the Company's products and services, plans to increase
manufacturing capacity, restructuring plans, new railcar delivery
volumes and schedules, growth in demand for the Company's railcar
services and parts business, and the Company's future financial
performance. Greenbrier uses words such as "anticipates,"
"believes," "forecast," "potential," "goal," "contemplates,"
"expects," "intends," "plans," "projects," "hopes," "seeks,"
"estimates," "strategy," "could," "would," "should," "likely,"
"will," "may," "can," "designed to," "future," "foreseeable future"
and similar expressions to identify forward-looking
statements. These forward-looking statements are not
guarantees of future performance and are subject to certain risks
and uncertainties that could cause actual results to differ
materially from in the results contemplated by the forward-looking
statements. Factors that might cause such a difference
include, but are not limited to, reported backlog and awards are
not indicative of our financial results; uncertainty or changes in
the credit markets and financial services industry; high levels of
indebtedness and compliance with the terms of our indebtedness;
write-downs of goodwill, intangibles and other assets in future
periods; sufficient availability of borrowing capacity;
fluctuations in demand for newly manufactured railcars or failure
to obtain orders as anticipated in developing forecasts; loss of
one or more significant customers; customer payment defaults or
related issues; actual future costs and the availability of
materials and a trained workforce; failure to design or manufacture
new products or technologies or to achieve certification or market
acceptance of new products or technologies; steel or specialty
component price fluctuations and availability and scrap surcharges;
changes in product mix and the mix between segments; labor
disputes, energy shortages or operating difficulties that might
disrupt manufacturing operations or the flow of cargo; production
difficulties and product delivery delays as a result of, among
other matters, inefficiencies associated with expansion or start-up
of production lines or increased production rates, changing
technologies, transfer of production between facilities or
non-performance of alliance partners, subcontractors or suppliers;
ability to obtain suitable contracts for the sale of leased
equipment and risks related to car hire and residual values;
integration of current or future acquisitions and establishment of
joint ventures; succession planning; discovery of defects in
railcars or services resulting in increased warranty costs or
litigation; physical damage or product or service liability claims
that exceed our insurance coverage; train derailments or other
accidents or claims that could subject us to legal claims; actions
or inactions by various regulatory agencies including potential
environmental remediation obligations or changing tank car or other
rail car or railroad regulation; and issues arising from
investigations of whistleblower complaints; all as may be discussed
in more detail under the headings "Risk Factors" and "Forward
Looking Statements" in our Annual Report on Form 10-K for the
fiscal year ended August 31, 2014,
and our other reports on file with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect management's
opinions only as of the date hereof. Except as otherwise
required by law, we do not assume any obligation to update any
forward-looking statements.
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SOURCE The Greenbrier Companies, Inc. (GBX)