RailAmerica puts Kalyn/Siebert on the block

BOCA RATON, Fla. (Nov. 15, 1999) — RailAmerica Inc. plans to sell its Kalyn/Siebert trailer manufacturing division in order to focus on its rail business.

Kalyn/Siebert produces about 1200 specialized trailers a year at plants in Gatesville, Tex., Trois-Rivieres, Que. In 1998, Kalyn had sales of $39.9 million and EBITDA (earnings before interest, taxes and depreciation) of $8.0 million, with a gross operating margin of 28%, RailAmerica said. Through the first nine months of 1999, Kalyn had sales of $33.9 million and EBITDA of $6.0 million.

RailAmerica chairman Gary O. Marino said Kalyn/Siebert “has been a tremendous asset for the company and has more than tripled its revenues, EBITDA and income since we acquired it in 1994. However, with our recent acquisitions in the U.S., Canada, and Australia, along with the pending RailTex acquisition, the disposition of Kalyn will allow the company to reduce debt or help fund our on-going rail acquisition program.”

The acquisition of RailTex will create the world’s largest short line and regional railroad operator. RailTex, operating 26 railroads over approximately 4100 route miles, is currently North America’s leading operator of short line railroad company, with operations concentrated in the southeastern, midwestern and New England regions of the United States, as well as Eastern Canada and Mexico.