FreightCar America acquires railcar components distributor

FreightCar America Inc. (NASDAQ: RAIL) completed the acquisition of Carly Railcar Components LLC, a distributor of railcar components, the company announced December 22.

The acquisition adds a family-owned distributor focused on running-repair components to FreightCar America's aftermarket distribution business. CRC operates a facility in Orange, Texas, and maintains a core-exchange program for reconditioned parts.

"Carly Railcar Components brings highly complementary capabilities that strengthen our position in the railcar aftermarket," said Nicholas Randall, president and chief executive officer of FreightCar America. The acquisition enhances the company's ability to serve customers with reduced lead times and expanded product availability, according to the statement.

Founded in 1995, Carly Railcar Components distributes original equipment manufacturer railcar components to repair shops, railroads, private car owners and industrial customers. The company serves as one of the major component distributors in North America.

Mike Riordan, vice president, chief financial officer and treasurer of FreightCar America, said the acquisition aligns with the company's capital allocation framework and is expected to be immediately accretive as the aftermarket business scales.

FreightCar America, headquartered in Chicago, designs and produces railroad freight cars, railcar parts and components. The company also provides railcar repair services and conversions.

The acquisition strengthens FreightCar America's position in the recurring revenue segment of railcar components, which includes frequently replaced parts that complement the company's existing product offerings.

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