The Greenbrier Cos. and Astra Rail Management GmbH said they will form a new company to create a Europe-based freight railcar manufacturing, engineering and repair business.
The Greenbrier Cos. and Astra Rail Management GmbH said they will form a new company, Greenbrier-Astra Rail, to create a Europe-based freight railcar manufacturing, engineering and repair business.
The combined enterprise will be formed between Greenbrier’s European operations headquartered in Swidnica, Poland, and Astra Rail, based in Germany and Arad, Romania.
For its part, Greenbrier will pay Astra Rail 30 million euros (U.S. $33 million) at closing of the deal and another 30 million euros in 12 months after closing. Greenbrier-Astra Rail will be about 75 percent controlled by Greenbrier.
Astra Rail’s Chairman Thomas Manns will own the remainder of the new company. In addition to his ownership stake, Manns will become chairman of the supervisory board of Greenbrier-Astra Rail and will lead the new company’s commercial operations.
Greenbrier said daily operations will be led by a management board including Bernd Böse, chief executive officer of Astra Rail, who will become CEO and president, and Bogdan Lesnianski, chief financial officer and the head of Greenbrier’s Wagony Swidnica operations, who will become CFO.
Closing of the transaction is contingent on, among other conditions, obtaining antitrust approval in certain EU countries.
Greenbrier-Astra Rail will be headquartered in the Netherlands and will have principal operations in Poland and Romania. The new company will have about 4,000 employees and six production and repair facilities across Europe.
“The railcar fleet in Western Europe is aging, with an average age of 25 years,” Lake Oswego, Ore.-based Greenbrier said. “This replacement demand, combined with anticipated growth in Europe and opportunities in nearby emerging markets, positions Greenbrier-Astra Rail for success.”
In addition to the European railcar business, Greenbrier-Astra Rail is expected to pursue growth in railcar markets in the Persian Gulf and Eurasia.
“Coupled with our investments in Saudi Arabia, Brazil and Mexico, Greenbrier has grown its international footprint and created a global network,” said Bill Furman, chairman and chief executive officer of Greenbrier, in a statement. “We believe there are significant future opportunities in international markets.”
Greenbrier expands European railcar manufacturing
