U.S.-based railroad transportation company Greenbrier Companies plans to buy American Railcar Industries (ARI), a manufacturer and maintainer of hopper and tanker railcars, in $400 million deal.
As a part of the deal, Greenbrier will add ARI's two production plants in Arkansas and the transaction will expand Greenbrier's railcar production.
Greenbrier said that the deal will also provide the company new cost-saving opportunities through the use of best practices, increased vertical integration, maximized production runs, improved supply chain efficiencies.
The company will buy ARI from hedge fund ITE Management and the transaction is expected to be completed in 2019.