MAUMEE, OHIO, US — The Andersons, Inc. on May 3 announced it has signed an agreement to sell its railcar repair business to Cathcart Rail. The announcement comes eight months after The Andersons sold its railcar leasing agreements to American Agricultural Transport, Inc. for $550 million, part of a broader strategic plan to focus on its agricultural segments.
“As announced in August of last year, we made a strategic decision to exit our rail segment to allow us to focus on and invest in our core agricultural verticals of grain and fertilizer,” said Patrick E. Bowe, president and chief executive officer of The Andersons. “This sale also further strengthens our balance sheet and should enhance shareholder returns. Finalizing the sale of our railcar repair business will complete our exit from our rail segment.”
Casey Cathcart, chairman and CEO of Cathcart Rail, said the acquisition of The Anderson’s railcar repair network aligns perfectly with its strategic goal of offering a broad array of rail services across a national footprint.
“With the addition of The Andersons railcar repair network, Cathcart Rail’s nearly 1,000 employees across 100+ locations make it the leading railcar services company in the country,” he said.