Timken Co. is working on a plan to buy the railroad car bearing operations of Greenbrier Cos. The deal should be completed by the end of May.
Timken Co. is considering a long-term agreement to provide Greenbrier Cos. with wheelset roller bearings used on railroad cars.
The plan is for Timken to buy substantially all of the equipment at Greenbrier’s reconditioned wheelset roller bearing facility in Elizabethtown, Ky. Greenbrier then would enter a long-term supply agreement to buy new or reconditioned bearings from Timken.
Greenbrier hopes to complete the deal before the end of May. The companies didn’t disclose the price of the asset purchase.
Both companies are working on a transition plan for the purchase.
Greenbrier, which supplies equipment and services for the railroad industry, announced the deal Thursday. The company said it was selling the wheelset roller bearing business because it no longer is a core asset.
Equipment used at the Elizabethtown facility will be moved to Timken locations. Timken reconditions rail bearings at facilities in Illinois, Kansas, Tennessee and Utah.
Brian Ruel, Timken’s vice president for off-highway, light vehicle systems and rail, said the agreement with Greenbrier aligns with Timken’s strategy to increase its services portfolio and invest in the rail business.