Trinity Industries ( NYSE: TRN ) announced the $70M acquisition of Holden America on Friday. The deal will include an additional minimum payment of $5M per year for the next two years as well.
Holden is a manufacturer of market-leading multi-level vehicle securement and protection systems, gravity-outlet gates, and gate accessories for freight rail in North America.
The industrials company said the acquisition of Holden provides it with a market-leading bi-level chock system. Along with Trinity’s existing tri-level chock system, this acquisition is also anticipated to strengthen 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.
"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," noted Trinity CEO Jean Savage.
The Holden acquisition is not expected to be material to Trinity’s ( TRN ) results.
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Trinity Industries announces $70M acquisition of Holden America