FreightCar America, Inc. (NASDAQ: RAIL) shares dipped to begin Monday. The Chicago-based firm, a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today announced that it has completed the acquisition of Carly Railcar Components, LLC, a family-owned, leading distributor of railcar components.
The acquisition strengthens FreightCar America’s aftermarket distribution business with a focus on running-repair components, a frequently replaced and highly recurring product category that complements the Company’s core offerings and product mix. Through the acquisition, the Company’s customers will benefit from reduced lead times and a larger catalog of ready-to-ship railcar components.
“Carly Railcar Components brings highly complementary capabilities that strengthen our position in the railcar aftermarket. CRC’s long-standing presence in component distribution and its established regional footprint, including a Houston-area facility in Orange, Texas, enhances our ability to serve customers with greater speed, reliability and product availability. This acquisition advances our strategic initiatives to build complementary capabilities that deliver enhanced value to our customers,” said FreightCar CEO Nicholas Randall.
Founded in 1995, Carly Railcar Components distributes OEM railcar components and operates a core-exchange program for reconditioned parts. The company serves repair shops, railroads, private car owners and other industrial customers.
RAIL shares dished off two cents to kick off a short trading week at $9.04.
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