Trinity Industries 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 manufacturer and global supplier of commercial highway products. The company is selling the business to Monomoy Capital Partners, a middle market private equity fund.

This transaction has been approved by Trinity’s board of directors and is subject to customary regulatory approvals. Trinity expects the transaction will close in Q4/21.

“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,” Jean Savage, CEO and president of Trinity Industries, said. “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. 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.”

Following the closing of the transaction, Trinity will report the results of its highway products business, currently included in the “all other” segment, as part of discontinued operations. This includes any gains recognized on the sale of the business. 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 is serving as the exclusive financial advisor to Trinity, and Akin Gump Strauss Hauer & Feld is serving as the company’s legal advisor in this transaction.