FreightCar America, Inc. announced it has completed its acquisition of Southern Parts & Equipment, Inc., a regional distributor of new, used and reconditioned railcar parts and equipment.
The transaction is FreightCar’s second in the railcar aftermarket space within the year, officials said, and further expands its aftermarket distribution capabilities while strengthening its ability to serve customers with a broader offering of railcar components. Southern Parts & Equipment has a long-standing presence in the rail industry, supplying railcar parts and equipment as well as supporting customers through consulting, inspections and project-related services.
“Southern Parts & Equipment is a highly complementary addition to our growing aftermarket platform,” Nicholas Randall, president and CEO of FreightCar America, said. “This acquisition further strengthens our ability to support customers with improved access to critical railcar components, while advancing our strategy to build complementary aftermarket capabilities that increase the value we deliver across the railcar lifecycle.”
Headquartered in Chicago, FreightCar is a leading designer, producer and supplier of railroad freight cars, railroad parts and components. The company also specializes in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into service.
“We are excited to welcome Southern Parts & Equipment to FreightCar America,” Michael Riordan, VP, CEO and treasurer of FreightCar America, said. “Southern Parts & Equipment brings valuable customer relationships, product knowledge and sourcing capabilities that align well with our aftermarket growth strategy. By combining its capabilities with FreightCar America’s commercial reach, supply chain discipline and growing aftermarket platform, we believe we can deliver greater value to customers while continuing to scale a more diversified and recurring revenue stream. This transaction is consistent with our disciplined capital allocation framework and is expected to be immediately accretive to FreightCar America.”