Trinity Industries, Inc. Announces the Acquisition of Holden America

Rhea-AI Summary

Trinity Industries, Inc. (NYSE:TRN) has acquired Holden America for an initial price of $70 million, with an additional $5 million annually for two years. Holden specializes in freight rail securement systems, enhancing Trinity’s market position in North America. This acquisition aims to diversify revenue streams by focusing on higher-margin aftermarket parts. The deal closed on December 30, 2022, and will retain all Holden employees. CEO Jean Savage emphasizes the strategic alignment with emerging market trends, particularly in vehicle securement for SUVs and electric vehicles.

Positive

• Acquisition strengthens Trinity's position as a leading manufacturer of autoracks in North America.
• Diversification of revenue streams into higher-margin aftermarket parts.
• Market-leading bi-level chock system increases Trinity's competitive edge.
• Retention of all Holden employees ensures continuity and expertise.

Negative

• None.

DALLAS--(BUSINESS WIRE)-- Trinity Industries, Inc. (NYSE:TRN) (“Trinity”) today announced the acquisition of Holden America (“Holden”) for an initial purchase price of $70 million with an additional minimum of $5 million per year for the next two years. This acquisition of Holden, a manufacturer of market-leading multi-level vehicle securement and protection systems, gravity-outlet gates, and gate accessories for freight rail in North America, provides Trinity a market-leading bi-level chock system. Along with Trinity’s existing tri-level chock system, this acquisition strengthens Trinity’s position as the leading manufacturer of autoracks in North America and allows the company to take advantage of an improving automobile end market.

“This acquisition fits well into our strategy to increase exposure to less cyclical and higher margin aftermarket parts, giving us more opportunities to serve our customers and diversify our revenue stream,” said Jean Savage, Trinity’s President and Chief Executive Officer. “Furthermore, as we see automobile preference move more toward SUVs and heavier electric vehicles, securement systems will become even more critical, and we look forward to being a market-leading chock provider and continuing to provide the quality and service that Holden’s customers have come to expect.”

The acquisition closed on December 30, 2022 and is not expected to be material to Trinity’s results. Trinity will retain all of the employees of Holden as part of the transaction.

About Trinity Industries

Trinity Industries, Inc., headquartered in Dallas, Texas, owns businesses that are leading providers of rail transportation products and services in North America. Our businesses market their railcar products and services under the trade name TrinityRail®. The TrinityRail platform provides railcar leasing and management services, as well as railcar manufacturing, maintenance and modifications. Trinity reports its financial results in two reportable segments: the Railcar Leasing and Management Services Group and the Rail Products Group. For more information, visit: www.trin.net.

Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements, including, but not limited to, future financial and operating performance, future opportunities and any other statements regarding events or developments that Trinity believes or anticipates will or may occur in the future, including the potential financial and operational impacts of the COVID-19 pandemic. Trinity uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “projected,” “outlook,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this release, and Trinity expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Trinity’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to risks and uncertainties regarding economic, competitive, governmental, and technological factors affecting Trinity’s operations, markets, products, services and prices, and such forward-looking statements are not guarantees of future performance. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current Reports on Form 8-K.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230106005050/en/

Investor Contact:

Leigh Anne Mann

Vice President, Investor Relations

Trinity Industries, Inc.

(Investors) 214/631-4420

Media Contact:

Jack L. Todd

Vice President, Public Affairs

Trinity Industries, Inc.

(Media Line) 214/589-8909

Source: Trinity Industries, Inc.

FAQ

What is the acquisition amount for Holden America by Trinity Industries?

Trinity Industries acquired Holden America for an initial price of $70 million, with an additional $5 million annually for two years.

When did Trinity Industries close the acquisition of Holden America?

The acquisition of Holden America by Trinity Industries closed on December 30, 2022.

How will the acquisition of Holden America impact Trinity's market position?

The acquisition will strengthen Trinity's position as a leading manufacturer of autoracks in North America and diversify its revenue into higher-margin aftermarket parts.

What products does Holden America manufacture?

Holden America manufactures multi-level vehicle securement and protection systems, gravity-outlet gates, and gate accessories for freight rail.

Why is the acquisition important for Trinity Industries?

The acquisition aligns with Trinity's strategy to increase exposure to less cyclical and higher-margin parts, enhancing revenue diversification.