CHICAGO--(BUSINESS WIRE)--
FreightCar America, Inc. (NASDAQ: RAIL) announced today that it has
completed the sale of its railcar repair and maintenance services
business to Appalachian Railcar Services, Inc. for an aggregate purchase
price of $20.0 million in cash and the assumption of certain liabilities
by the purchaser.
FreightCar America’s President and Chief Executive Officer, Joe McNeely,
said, “The consummation of this transaction will allow us to increase
our focus on our railcar manufacturing, parts and leasing businesses.
Since 2013, FreightCar America has successfully broadened its product
portfolio through the introduction of a number of new railcar types.
Moving forward, we will continue to diversify our railcar portfolio and
drive additional shareholder value through operational improvements,
enhancing productivity through training, technology and automation.”
Republic Partners, LLC advised FreightCar America on the transaction.
FreightCar America, Inc. manufactures a wide range of railroad freight
cars, supplies railcar parts and leases freight cars through its JAIX
Leasing Company subsidiary. FreightCar America designs and builds
high-quality railcars, including coal cars, bulk commodity cars, covered
hopper cars, intermodal and non-intermodal flat cars, mill gondola cars,
coil steel cars and boxcars. It is headquartered in Chicago, Illinois
and has facilities in the following locations: Cherokee, Alabama;
Danville, Illinois; Grand Island, Nebraska; Johnstown, Pennsylvania; and
Roanoke, Virginia. More information about FreightCar America is
available on its website at www.freightcaramerica.com.
This press release may contain statements relating to our expected
financial performance and/or future business prospects, events and plans
that are “forward-looking statements” as defined under the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
represent our estimates and assumptions only as of the date of this
press release. Our actual results may differ materially from the results
described in or anticipated by our forward-looking statements due to
certain risks and uncertainties. These potential risks and uncertainties
include, among other things: the cyclical nature of our business;
adverse economic and market conditions; fluctuating costs of raw
materials, including steel and aluminum, and delays in the delivery of
raw materials; our ability to maintain relationships with our suppliers
of railcar components; our reliance upon a small number of customers
that represent a large percentage of our sales; the variable purchase
patterns of our customers and the timing of completion, delivery and
customer acceptance of orders; the highly competitive nature of our
industry; the risk of lack of acceptance of our new railcar offerings by
our customers; and the additional risk factors described in our filings
with the Securities and Exchange Commission. We expressly disclaim any
duty to provide updates to any forward-looking statements made in this
press release, whether as a result of new information, future events or
otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150930006746/en/
FreightCar America, Inc.
Charles F. Avery, Jr., 800-458-2235
Source: FreightCar America, Inc.