Rail freight cars manufacturer FreightCar America, Inc. has entered into an asset purchase agreement with Navistar, Inc. to acquire substantially all of Navistar’s operating assets associated with its railcar operations at the Shoals facility in Cherokee, Alabama.
FreightCar has subleased a substantial portion of the Shoals facility since 2013. As a result of this transaction, FreightCar will become the sole tenant of the approximately 2.2 million square foot facility, which was purpose-built for the manufacture and repair of railcars. FreightCar will purchase select operating equipment and inventory at the Shoals facility, and receive a one-time up-front payment to cover future operating costs including rent payments at the facility.
“This acquisition will allow us to now control our own destiny and benefit from the full economics of all future railcars built within the Shoals facility … We are making important investments in people, technology, equipment and infrastructure to enhance our state-of-the-art facility and world-class workforce, which will increase our operational efficiencies,” said Jim Meyer, President and Chief Executive Officer.
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