LAKE OSWEGO, Ore., Aug. 1, 2016 /PRNewswire/ -- The Greenbrier
Companies, Inc. (NYSE: GBX) today announced that it has closed on
the previously announced acquisition of a 19.5% ownership stake in
Amsted-Maxion Cruzeiro for $10
million. Based in Cruzeiro, Brazil, Amsted-Maxion Cruzeiro is a
manufacturer of castings and components for railcars and other
heavy equipment. In addition to Greenbrier, Amsted-Maxion Cruzeiro
is owned by Amsted Rail Brasil ("Amsted") and Iochpe-Maxion S.A.
("Iochpe"), each holding 40.25% of the company. Amsted-Maxion
Cruzeiro will use Greenbrier's strategic investment to pay down
outstanding debt and position the company for future growth.
Amsted-Maxion Cruzeiro is also the co-owner with Greenbrier of
Amsted-Maxion Equipamentos E Serviços Ferroviários S.A.
("Greenbrier-Maxion"), the Brazilian railcar manufacturer based in
Hortolândia. Greenbrier currently owns 19.5% of Greenbrier-Maxion
while Amsted-Maxion Cruzeiro holds the remaining 80.5% equity
interest. Upon exercising the purchase options it holds,
Greenbrier can potentially own up to a 60% direct equity interest
in Greenbrier-Maxion. Based on its current equity position in
Amsted-Maxion Cruzeiro, Greenbrier directly and indirectly owns 35%
of the outstanding equity of Greenbrier-Maxion.
Amsted-Maxion Cruzeiro serves a broad range of transportation
equipment markets throughout Latin
America, and provides railcar castings and components to
Greenbrier-Maxion. Amsted-Maxion Cruzeiro also supplies
components for heavy equipment used in agriculture, mining and
other industrial applications. Net sales of Amsted-Maxion
Cruzeiro totaled approximately $100
million in calendar 2015. Greenbrier-Maxion achieved over
$200 million in net sales for the
same period. As part of this investment, Greenbrier also
holds an option, subject to certain conditions, to acquire an
additional 10% interest in Amsted-Maxion Cruzeiro. Greenbrier's
option expires on October 20, 2017.
Amsted, Iochpe and Greenbrier are parties to a shareholders'
agreement that provides Greenbrier customary minority governance
protections in Amsted-Maxion Cruzeiro.
In 2015, as part of its initial investment in Greenbrier-Maxion,
Greenbrier secured an option to acquire an additional 40.5% direct
ownership interest in Greenbrier-Maxion. The option is
exercisable until December 30, 2017,
but has been modified to provide Greenbrier greater flexibility.
The option now allows Greenbrier to purchase an additional direct
ownership interest in Greenbrier-Maxion at any point in a range
between 30.6% and 40.5%, with the option exercise price adjusted in
proportion to the ownership interest obtained.
"We are pleased with the progress made at Greenbrier-Maxion over
the past year together with our partners Amsted and Iochpe," said
William A. Furman, Chairman and
CEO.
Furman added, "Global markets are important for Greenbrier and a
significant part of our business strategy. I am pleased to expand
our partnership in Brazil with
Amsted and Iochpe beyond railcar manufacturing into castings and
components for railcars and other heavy equipment."
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 manufacturing
facilities in the U.S., Mexico and
Poland and marine barges at our
U.S. manufacturing facility. Greenbrier sells reconditioned wheel
sets and provides wheel services at locations throughout the U.S.
We recondition, manufacture and sell railcar parts at various U.S.
sites. Through GBW Railcar Services, LLC, a 50/50 joint venture
with Watco Companies, LLC, freight cars are repaired and
refurbished at over 30 locations across North America, including more than 10 tank car
repair and maintenance facilities certified by the Association of
American Railroads. Greenbrier owns a lease fleet of over 9,000
railcars and performs management services for over 260,000
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 adjust
manufacturing capacity, restructuring plans, new railcar delivery
volumes and schedules, changes 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 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; inability to convert
backlog of railcar orders and obtain and execute lease syndication
commitments; 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;
sovereign risk to contracts, exchange rates or property rights;
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, costs or inefficiencies associated with expansion,
start-up or changing of production lines or changes in 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, 2015,
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)