Freightcar America buys DTE
Chicago-based operator expands parts and service network across the US
FreightCar America, which builds rail wagons, has agreed to buy DTE Rail Services for US$23.2 million in a move aimed at bolstering its parts and servicing capabilities.
DTE Rail Services, a subsidiary of Detroit-based utility DTE Energy, services freight cars and coal trains and operates in Colorado, Indiana and Nebraska.
The transaction is expected to close by the end of the year.
The deal will see around 130 skilled employees transfer to Chicago-based FreightCar, which said it had built many of the trains DTE currently serviced.
The acquired business will be known as FreightCar Rail Services, which insiders said would provide repair and maintenance, inspection and fleet management services for all types of freight-carrying railcars.
Ed Whalen, President and CEO of FreightCar America, said: “The expansion of our railcar services activities will diversify our revenue sources and will serve to lessen the cyclicality of our earnings.”
He added: “We expect this will expand our customer base and strengthen existing relationships by significantly enhancing the company’s involvement in the entire railcar life cycle. “
DTE Rail Services, a subsidiary of Detroit-based utility DTE Energy, services freight cars and coal trains and operates in Colorado, Indiana and Nebraska.
The transaction is expected to close by the end of the year.
The deal will see around 130 skilled employees transfer to Chicago-based FreightCar, which said it had built many of the trains DTE currently serviced.
The acquired business will be known as FreightCar Rail Services, which insiders said would provide repair and maintenance, inspection and fleet management services for all types of freight-carrying railcars.
Ed Whalen, President and CEO of FreightCar America, said: “The expansion of our railcar services activities will diversify our revenue sources and will serve to lessen the cyclicality of our earnings.”
He added: “We expect this will expand our customer base and strengthen existing relationships by significantly enhancing the company’s involvement in the entire railcar life cycle. “
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