Greenbrier Companies, Inc. has acquired, for $10 million, a 19.5 percent stake in Amsted-Maxion Cruzeiro, a Brazilian manufacturer of castings and components for railcars and other heavy equipment.
The Amsted-Maxion Cruzeiro will use Greenbrier's investment to pay down outstanding debt and position the company for future growth. The investment is subject to customary closing conditions and is expected to close in Greenbrier's 2016 fourth quarter.
"Our first year of operations with Amsted and Iochpe at Greenbrier-Maxion has been an unqualified success," said William A. Furman, Greenbrier chairman and CEO. “A sign of our progress came last month when Revista Ferroviaria, the leading rail publication in Brazil, recognized Greenbrier-Maxion as Best Freight Car Manufacturer and Best Manufacturer of Undercarriage Components over several larger, well-established multinational competitors.”
"Global markets are increasing in strategic importance for Greenbrier,” added Furman. “Over the years, Greenbrier has successfully participated in several joint ventures, internationally and domestically. I am pleased to extend our partnership in Brazil with Amsted and Iochpe beyond railcar manufacturing into castings and components for railcars and other heavy equipment."
Prior to Greenbrier's investment, Amsted-Maxion Cruzeiro was owned 50/50 by Amsted Rail Company, Inc. (Amsted) and Iochpe-Maxion S.A. (Iochpe).