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Rail News: Railroading Supplier Spotlight
ARS acquires FreightCar America's repair, maintenance business
Appalachian Railcar Services Inc. subsidiary ARS Nebraska LLC has acquired Freightcar America Inc.'s (FCA) rail-car repair and maintenance service business, the parent company announced late last week.
The acquisition by ARS further solidifies the company's aggressive growth plans, company officials said in a press release.
"By bringing these FCA operations into our portfolio, we will greatly expand our customer base and open up tremendous opportunities for the future," said ARS President and Chief Executive Officer Kurt Higginbotham.
The purchase price was $20 million in cash, according to a FreightCar press release. Republic Partners LLC advised FreightCar America on the transaction, which is expected to allow the latter company to focus on its railcar manufacturing, parts and leasing businesses, company officials said.
The acquisition adds to ARS 125 employees, five locations, 22 miles of rail, a five-mile short-line operation, and direct connections with BNSF Railway Co. and Union Pacific Railroad.
Since 2000, ARS has grown from a single-service rail operation in West Virginia to a multi-service rail company that offers services in 15 states.
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