Trinity (TRN) Expands Footprint With RSI Logistics Buyout
Trinity Industries TRN, having remained in line with its objective to expand network, announced that it has acquired RSI Logistics for $70 million. The transaction, which closed on Mar 8, is not expected to have a significant impact on Trinity’s results.
The erstwhile RSI Logistics is a data-centric provider to the North American rail industry of proprietary software, logistics services and solutions pertaining to terminal management. The move to buy RSI Logistics is a prudent one due to the presence of numerous synergies.
New opportunities for growth and innovation are likely to be created as RSI’s rail technology, logistics services and bulk terminal network are coming together with Trinity’s railcar manufacturing and leasing, technology and maintenance service. As a result of the combination, services to customers are also likely to improve. Trinity has said that all employees of RSI Logistics will be retained.
Expressing delight at the acquisition, Jean Savage, Trinity’s President and Chief Executive Officer said “Coupling RSI’s expertise and reputation with the transformational technology of Trinsight will deliver a unique tool to rail shippers to gain more control of their supply chains.”
Zacks Rank & Key Picks
Trinity currently carries a Zacks Rank # 5 (Strong Sell).
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