THE GREENBRIER Companies announced an agreement to acquire the operating assets of American Allied Railway Equipment Co for $83m in cash on January 28.

American Allied supplies new and reconditioned wagon wheelsets from plants in Georgia and Illinois, where it also has a coupler and running gear component refurbishment business. Revenue of $95m was expected from 2007, with Ebitda of $15m and 130 employees.

Greenbrier President & CEO William A Furman said the acquisition 'represents a continuation of our stated strategy to grow our higher margin, less cyclical business units.' Refurbishment, parts and leasing have grown from 22% of revenue and 48% of margin in 2006 to 40% and 68% in 2007.