LAKE OSWEGO, Ore. (AP) — Railcar manufacturer Greenbrier Cos. said Monday it will buy American Allied Railway Equipment Co. and its subsidiaries for $83 million in cash.
Greenbrier said it will fund the acquisition through existing cash and its credit facilities. The company didn't say when it expects the deal to close.
American Allied has wheel facilities in Washington, Ill. and Macon, Ga., and a parts reconditioning business in Peoria, Ill.
''These shops give us more capacity in the higher demand central U.S. region and expand our geographic coverage in the southeast, where we have had difficulty meeting customer needs,'' Greenbrier said in a statement.
American Allied expects to report 2007 sales of about $95 million. Greenbrier had fiscal 2007 revenue of $1.22 billion.
Greenbrier expects the acquisition to immediately boost earnings.