RailAmerica says it will sell its trailer manufacturing subsidiary, Kalyn/Siebert, and focus on its core freight railroad business.
Kalyn manufactures customized trailers for commercial and U.S. government/military customers at plants in Gatesville, TX, and Trois-Rivieres, Quebec. In 1998 it sales were approximately $39.9 million and earnings before interest, taxes and depreciation were $8 million. Through the first nine months of 1999 sales were $33.9 million and earnings were $6 million.
RailAmerica has retained an investment banking firm, ING Barings LLC, to facilitate the sale.