Rail equipment supplier FreightCar America wrapped up its acquisition of DTE Rail Services from Detroit-based DTE Energy.
Already, the DTE unit that provides railcar repair and maintenance, inspection and fleet management services is operating as FreightCar Rail Services. Its 130 employees operate in Colorado, Indiana and Nebraska. It has three shops, two in Nebraska and one in Indiana, along with mobile and on-site inspection and repair units.
FCA announced the plan in September to buy DTE Rail Services for $23.2 million in cash. That is part of a trend in which railcar manufacturers have expanded their other business lines to increase revenue at a time when the recession-swelled overhang of unused older equipment has weighed on orders to build new units.
"This acquisition furthers our strategic growth initiative to expand our presence in the railcar services sector and provides a solid foundation for growth going forward," said Ed Whalen, FCA's president and CEO.
"We expect that this addition will expand our customer base and strengthen existing relationships by significantly enhancing the company's involvement in the entire railcar life cycle," he said."
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