Greenbrier closes on stake in Brazilian railcar manufacturer

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LAKE OSWEGO, Ore. – The Greenbrier Companies Inc. closed on the previously reported acquisition of a 19.5 percent ownership stake in Amsted-Maxion Hortolandia, the leading railcar manufacturer in South America. The deal is worth about $15 million. Greenbrier has an option to acquire an additional 40.5 percent ownership interest, to be exercised no later than Sept. 30, 2017.

Amsted-Maxion Hortolandia will use Greenbrier's strategic investment to pay down outstanding debt and position the company for future growth.

Amsted-Maxion Hortolandia holds an estimated 70 percent annual market share in the South American new railroad freight car market. Market demand in Brazil is forecast to exceed about 4,000 new rail cars annually for the near term and potentially through the end of this decade. Longer term new railcar demand is expected to increase significantly in Brazil, the world's 7th largest economy measured by gross domestic product.

Amsted-Maxion, a 50/50 joint venture between Amsted Rail and Iochpe-Maxion, will continue to own the remaining 80.5 percent in Amsted-Maxion Hortolandia.

In 2013, Greenbrier and Amsted-Maxion established a relationship in Brazil by entering into a licensing agreement related to the production of intermodal railcars designed by Greenbrier.

NEWSWIRETrains News Wire

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