(The Associated Press circulated the following article on September 12.)
LAKE OSWEGO, Ore. — Railcar maker and refurbisher Greenbrier Cos. said Tuesday it bought Rail Car America Inc., a provider of railcar repair services, for about $34 million in cash.
The deal includes Rail Car’s American Hydraulics unit as well as its Brandon Corp. subsidiary.
RCA reconditions and repairs railcar cushioning units through its American Hydraulics division, and operates a switching railroad in Nebraska through Brandon Corp.
The transaction is expected to add 10 to 15 cents per share to Greenbrier’s fiscal 2007 earnings, the company said. RCA currently generates nearly $40 million in annual revenue with a workforce of about 400.
For fiscal 2005, Greenbrier earned $1.92 per share on sales of $1.02 billion.