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12/8/2004



Rail News: M&A

Greenbrier buys Bombardier's 50 percent interest in Mexican freight-car venture


The Greenbrier Cos. now owns 100 percent of Mexico-based freight-car builder Greenbrier-Concarril L.L.C.

Late yesterday, Greenbrier announced it acquired Bombardier Transportation's 50 percent interest in the parties' joint venture, which is located in Sahagun, Mexico. Under the deal’s terms, Greenbrier will pay Bombardier about $10 million in cash installments over an undisclosed period of time.

Greenbrier-Concarril will continue to build cars from nearly 500,000 square feet of leased space at the facility, which has the capacity to produce about 4,000 intermodal and "conventional" freight cars annually from two production lines, according to a prepared statement. The facility also features a full-service wheel and axle shop.

"Greenbrier-Concarril is currently operating at production rates which are much higher than previously achieved, and production is planned to increase to near capacity," said Greenbrier President and Chief Executive Officer William Furman in a prepared statement. "Efficiencies available in Mexico, coupled with changing global economics, make this facility located near Mexico City a logical choice for future production."

Greenbrier-Concarril is on track to generate $125 million in fiscal-year 2005 revenue, according to Greenbrier.



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