USA: Appalachian Railcar Services subsidiary ARS Nebraska bought FreightCar America’s wagon repair and maintenance business on September 30, paying $20·0m in cash and assuming certain liabilities.
President & CEO Kurt Higginbotham said the deal was ‘a great moment’ in the history of ARS, which since 2000 has expanded into a multi-service rail business with wagon sale, leasing, repair and maintenance activities and train handling operations in 15 states.
The latest acquisition adds 125 employees at five sites, along with 35 km of railway, an 8 km short line operation and direct connections with BNSF and Union Pacific. ‘By bringing these FCA operations into our portfolio, we will greatly expand our customer base and open up tremendous opportunities for the future’, said Higginbotham.
FreightCar America has sold the repair and maintenance business to focus on wagon manufacturing, spare parts and leasing, according to President & CEO Joe McNeely.
Republic Partners advised FreightCar America on the sale, while Steptoe & Johnson was legal advisor to ARS.