A Trinity Industries, Inc. subsidiary has purchased the assets of Seaboard Railcar Repair, a company Trinity used. Terms were not disclosed.
Seaboard provides a full range of services for both tank and freight railcars ranging from standard maintenance and program modifications to specialized cleaning, blasting, lining, painting, inspection and testing. The transaction includes the acquisition of two maintenance facilities located in Oklahoma and North Carolina with access to a number of major railroad interchanges.
The acquisition was made by Trinity Railcar Repair, Inc. “As a long-standing, key customer of Seaboard Railcar Repair, we have a deep respect for the quality of services and maintenance capabilities provided by this company,” said D. Stephen Menzies, Trinity Industries senior vice president and the group president responsible for Trinity’s railcar manufacturing and leasing businesses. “This transaction supports the growth of our lease fleet and the associated maintenance and regulatory compliance required as the fleet ages.”
Trinity’s leasing company has been a customer of Seaboard, representing a large portion of its business. The associated revenue and profit will be eliminated in consolidation, and the acquisition will not have a material impact on Trinity’s consolidated financial results, according to Trinity.