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Friday, December 01, 2006

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Greenbrier has purchased Meridian Rail Holdings Corp. for $227.5 million. Meridian manufactures replacement wheel sets for railcars at its locations throughout the United States and Mexico. The October purchase makes Greenbrier a market leader in the railcar business, according to Mark Rittenbaum, senior vice president of Greenbrier. Meridian was an attractive purchase because of the magnitude of business it conducted. Meridian is expected to add $400 million in revenue to Greenbrier’s annual fiscal results. That would be about three times the amount of revenue the company generated in the 2006 fiscal year. Rittenbaum does not anticipate any layoffs of Meridian’s 300 employees as the companies merge.

 

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