Greenbrier-Astra Rail in business

The Greenbrier Companies, Inc. and Astra Holding GmbH on June 1 completed their previously announced plans to create Greenbrier-Astra Rail, described as “Europe’s largest end-to-end freight railcar manufacturing, engineering and repair business.”

Greenbrier-Astra Rail was created to reach markets throughout Europe, Eurasia, and Gulf Cooperation Council (GCC) countries like Saudi Arabia. The merger partners said they expect the new venture to be accretive to Greenbrier’s annual earnings per share by $0.15-$0.35, beginning in fiscal 2018.

As previously announced, Greenbrier controls Greenbrier-Astra Rail with an equity interest of approximately 75%. Thomas Manns, most recently chairman of Astra Rail, owns the remainder of the new company. In addition to his ownership stake, Manns becomes Chairman of the Supervisory Board of Greenbrier-Astra Rail and leads its commercial operations, working closely with its Management Board and Jim Cowan, President of Greenbrier International. Also serving on the Supervisory Board is Bill Furman, Chairman and CEO of Greenbrier; Alejandro Centurion, President of Greenbrier Global Manufacturing Operations; Klaus Krauth, Managing Director of Astra Holding GmbH and Cowan.

Greenbrier-Astra Rail includes all European operations of Greenbrier and Astra Rail, including six railcar manufacturing sites and railcar repair facilities in addition to sales, administration and engineering offices. The new company employs 4,000 people across Eastern and Western Europe.

“The new company will deploy the global engineering, design and manufacturing expertise of the Greenbrier Manufacturing Organization (GMO), with flagship facilities in Portland, Ore., and Colleyville, Tex., Greenbrier said. “GMO’s extensive capabilities allow Greenbrier-Astra Rail to produce freight cars for any gauge or local standard in the world. For example, contracts with GCC-based customers for U.S.-style freight railcars will continue to be manufactured in Europe under the direction of Greenbrier’s senior U.S. manufacturing team.”

“Greenbrier-Astra Rail is led by a team with decades of experience in railcar markets throughout Eastern and Western Europe, as well as experience in North America and emerging markets around the world,” Greenbrier said. “A Management Board including CEO and President Bernd Böse, most recently CEO of Astra Rail, and CFO Bogdan Lesnianski, previously head of Greenbrier’s Wagony Swidnica operations, lead daily operations. Industry estimates indicate a high replacement demand for freight railcars in the Western European rail market, where the typical freight railcar has been in service for at least 25 years. Demand in mature markets like Western Europe coupled with opportunities in nearby emerging markets positions Greenbrier-Astra Rail for success.”

“The creation of Greenbrier-Astra Rail extends Greenbrier’s commitment to global diversification while providing scale and greater value to our customers in Europe,” said Furman. “We are excited to unify the creative and capable management teams from both companies to deliver world-class innovation to our freight railcar customers in Europe and beyond. Together with our investments in Saudi Arabia, Brazil and Mexico, Greenbrier has substantially grown its international footprint over the past several years to create a truly global network. We look forward to an expanded presence in Europe, while we also address developing markets in the GCC, Africa and Eurasia.”

“This transaction is transformational. Our combined operation is better positioned to pursue the growth opportunities offered by the freight car markets in Europe and globally,” said Manns. “Greenbrier-Astra Rail will capitalize on the substantial market opportunity in Europe, leveraging our resources to provide the best end-to-end solutions for our customers. Beyond Europe, we will aggressively pursue opportunities in emerging freight railcar markets that we can uniquely access from our Europe-based operations.”