The joint venture will combine Greenbrier’s European operations headquarters in Swidnica, Poland, and Astra Rail based in Munich, Germany and Arad, Romania. Both companies will have roles in the management, and will offer manufacturing and service capability in Europe on a larger scale, with the aim of offering greater efficiency for customers. Greenbrier-Astra Rail says it will also seek to expand its wagon business in the Gulf Cooperation Council (GCC) nations and Eurasia.
Greenbrier will pay Astra Rail $US 30m at closing, and $US 30m 12 months after closing as partial consideration for its majority interest.
Greenbrier will have an approximate 75% interest in Greenbrier-Astra Rail while Astra Rail’s Chairman Mr Thomas Manns will own the remainder of the company. In addition to his ownership stake, Manns will become chairman of the supervisory board and will lead the new company’s commercial operations, working closely with its management board and Mr Jim Cowan, the president of Greenbrier International.
Greenbrier-Astra Rail will include all European operations of Greenbrier and Astra Rail.