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4/7/2004



Rail News: M&A

Global Railway completes purchase of YSD Industries' assets



Yesterday, Global Railway Industries Ltd. announced it acquired YSD Industries Inc.'s machinery, equipment, land, buildings, patents, licenses, computer hardware and software, engineering designs and existing order backlog for $2 million. Global Railway — which reached a sales agreement with YSD last month — purchased the assets with existing cash reserves.

Founded in 1924, YSD supplies rail-car doors and sides, hopper car outlet gates, box-car roofs, auto-rack side screens and roofs, and stamped grating products.

After a three-year decline, the North American rail-car market is growing, with orders expected to reach 40,000 this year compared with 18,000 in 2003. Because YSD generated about $45 million in annual revenue during market peaks, the supplier has growth potential, Global Railway officials believe.

"YSD has a very competitive product line and a skilled labor force," said Global Railway President and Chief Executive Officer Mike Kohut in a prepared statement. "Given that Global has been selling rail-car doors into the Canadian market through its subsidiary Prime Railway Services, we expect to see synergies emerge between the two divisions as the integration of YSD is completed."


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