The Longwood Group Announces Successful Exit of Railcar Leasing Joint Venture

Rhea-AI Summary

The Longwood Group announced the successful sale of its interest in GBX Leasing, LLC, a joint venture with Greenbrier Companies (NYSE: GBX). Established in February 2021, GBXL has expanded to over 4,500 leased railcars, significantly exceeding initial investment expectations. Longwood's strategic guidance has capitalized on favorable market conditions, benefiting both Greenbrier shareholders and Longwood investors. GBXL continues as a wholly-owned subsidiary of Greenbrier, enhancing its leasing strategy and value proposition for customers.

Positive

• GBX Leasing exceeded initial investment expectations, doubling anticipated volume.
• The railcar portfolio is well-positioned to benefit from lease rate inflation and asset appreciation.
• Longwood's strategic guidance contributed to growth, enhancing shareholder value for both Longwood and Greenbrier.

Negative

• None.

CHICAGO, Jan. 3, 2023 /PRNewswire/ -- The Longwood Group, LLC ("Longwood"), a Chicago-based asset management and advisory services firm, today announced the successful sale of its interest in its railcar leasing joint venture, GBX Leasing, LLC ("GBXL"), a partnership with The Greenbrier Companies, Inc. (NYSE: GBX, "Greenbrier"). GBXL will remain in operation as a wholly-owned subsidiary of Greenbrier, a leading international supplier of equipment and services to global freight transportation markets. 

Formed in February 2021, GBXL was established to complement Greenbrier's integrated business model of railcar manufacturing and services through the extension of their commercial platform and the further development of a leased-railcar strategy.  As part of the joint venture, Longwood provided strategic investment guidance and market assistance – including identifying secondary market transactions, lease pricing strategy and asset management oversight, as well as developed GBX Leasing's initial capital structure. Together, Greenbrier and Longwood grew the portfolio to over 4,500 leased railcars from both newly-originated railcar leases and a secondary market acquisition. 

"We are extremely pleased with the success of GBX Leasing within its first years of operation," said D. Stephen Menzies, Longwood's Chief Executive Officer, and outgoing Chairman and Chief Executive Officer of GBX Leasing. "GBXL more than doubled the expected investment volume as we capitalized on favorable market opportunities. Additionally, the rail portfolio was well-positioned to benefit from lease rate inflation and asset appreciation. We enjoyed working with the Greenbrier Leadership Team as they continued to develop their leasing strategy. The GBXL platform not only bolsters the value-proposition for Greenbrier's rail customers going forward, but also created tremendous value for Greenbrier shareholders and Longwood's investors in its first two years."

About The Longwood Group, LLC

The Longwood Group is an asset management and advisory services firm specializing in services to institutional investors and financial sponsors seeking investment in transportation equipment and services businesses. Longwood uses its transportation industry experience, extensive asset knowledge, and financing expertise to identify and develop attractive proprietary investment opportunities for its financial partners. For more information on The Longwood Group, please visit www.longwoodgrp.com.

About Greenbrier

Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Through its wholly-owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars and marine barges in North America, Europe and Brazil. We are a leading provider of freight railcar wheel services, parts, maintenance and retrofitting services in North America through our maintenance services business unit. Greenbrier manages 408,000 railcars and offers railcar management, regulatory compliance services and leasing services to railroads and other railcars owners in North America. GBX Leasing (GBXL) is a special purpose subsidiary that owns and manages a portfolio of leased railcars that originate primarily from Greenbrier's manufacturing operations. GBXL and Greenbrier own a lease fleet of approximately 12,200 railcars.  Learn more about Greenbrier at www.gbrx.com.

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SOURCE The Longwood Group

FAQ

What is the significance of the sale of GBX Leasing by The Longwood Group?

The sale marks a successful exit for The Longwood Group, demonstrating the successful growth of GBX Leasing and its importance to Greenbrier's leasing strategy.

How many railcars are under GBX Leasing (GBXL) after the joint venture's growth?

GBX Leasing has expanded its portfolio to over 4,500 leased railcars since its formation in February 2021.

What impact does GBX Leasing's success have on Greenbrier (NYSE: GBX)?

GBX Leasing's performance enhances the value proposition for Greenbrier's customers and creates significant value for Greenbrier's shareholders.

When was GBX Leasing established?

GBX Leasing was formed in February 2021 as a joint venture between The Longwood Group and The Greenbrier Companies.