Berkshire Hathaway’s Marmon Holdings, Inc. has announced the acquisition of Transco Railway Products Inc., a railcar repair business with operations across the northern U.S., from Transco Inc. Financial terms were not disclosed.
Chicago-based Transco Railway Products provides railroad tank car and freight car repair and maintenance, auto-rack certification, and hopper car cleaning at seven repair shops located in the Great Lakes region, Iowa, and Montana. The company also provides components to the freight car industry from a fabrication site in Ohio. The business was founded in 1936 as a provider of replacement parts for railcars.
The acquired company will continue to operate as Transco Railway Products within Marmon’s Rail & Leasing sector, whose companies provide railroad tank car manufacturing, leasing, and repair services; intermodal tank containers; in-plant rail switching and loading/unloading services; track installation and maintenance services; and steel tank heads and cylinders for markets including energy, chemical, petrochemical, agricultural, and transportation.
Marmon’s Railcar Repair Services group offers the largest railroad tank car repair and maintenance network in North America.
“We are excited to acquire a company with such a solid reputation in the railcar repair arena,” said Bill Merrill, President of Marmon Railcar Repair Services. “Our goal is to leverage Marmon’s resources to help Transco Railway Products expand its business in both freight and tank car repair.”
Bob Nelson, current President of Transco Railway Products, will continue to lead the business. “We have significantly invested in our repair network over the past several years, allowing us to grow,” Nelson said. “With Marmon’s backing, we look forward to further growth to better serve our existing and new customers.”
Marmon Rail & Leasing is part of Marmon Holdings, a global industrial organization comprising 10 diverse business sectors and more than 100 autonomous manufacturing and service businesses with revenues of more than $8.1 billion in 2018.
© 2019 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.