Trinity Industries, Inc. announced the company has entered into a definitive agreement to sell its highway products business for $375 million in cash, subject to customary closing conditions and adjustments. Trinity’s highway products business is a leading manufacturer and global supplier of commercial highway products. The company is selling the business to Monomoy Capital Partners, an operationally focused middle market private equity fund, which will provide benefit to the highway products business and its investors.
This transaction has been approved by the Board of Directors and is subject to customary regulatory approvals. Trinity expects the transaction will close in the fourth quarter of 2021.
“We continue the process to optimize our business and believe that selling the highway products business will allow us to fully focus on the rail-related segments,” said Jean Savage, Trinity’s Chief Executive Officer and President. “Trinity’s long history in the North American rail industry gives me great confidence that focusing our attention and resources on this industry will allow us to meet our long-term financial and operational goals and continue to optimize our capital structure.”
“Our highway business has been performing well and the bid process was competitive, which allowed us to find the right buyer for the business and deliver a great outcome for our shareholders,” Savage said. “I want to thank our employees in highway products for their hard work and contributions to Trinity and wish them continued success as they grow on a standalone basis.”
Use of proceeds from the sale will flow through the company’s capital allocation framework, and Trinity expects to return a significant portion of proceeds to shareholders.
J.P. Morgan Securities LLC is serving as the exclusive financial advisor to Trinity, and Akin Gump Strauss Hauer & Feld LLP is serving as the company’s legal advisor in this transaction.
Trinity Industries, Inc., headquartered in Dallas, TX, owns businesses that are leading providers of rail transportation products and services in North America. Its rail-related businesses market their railcar products and services under the trade name TrinityRail. The TrinityRail platform provides railcar leasing and management services, as well as railcar manufacturing, maintenance and modifications.