Trinity Industries, Inc. Introduces the Spin-off Company Name of Arcosa, Inc. and Announces Filing of
Initial Form 10 Registration Statement for the Planned Spin-off
Separation Remains on Track for Completion in the Fourth Quarter of 2018
Trinity Industries, Inc. (NYSE: TRN) (“Trinity”) today introduced the name of its future infrastructure company as Arcosa, Inc.
(“Arcosa”) following the separation of the two companies into independent, publicly-traded companies. The previously announced
spin-off transaction remains on track to be completed in the fourth quarter of 2018 through a tax-free spin of Arcosa to Trinity
stockholders.
“We are pleased to announce the name of Arcosa, our future, publicly-traded infrastructure company,” said Antonio Carrillo, the
President and Chief Executive Officer of Arcosa. “Our new name symbolizes the ‘arc’ of progress for our business and our ongoing
commitment to meeting critical infrastructure needs through innovation, entrepreneurship, and flexibility. We will have a new name,
but our individual businesses have built reputations for quality, service, and operational excellence over decades. We are proud of
our historical roots as part of Trinity, and are equally honored to be part of Arcosa’s exciting future as a standalone public
company.”
Today with the introduction of Arcosa, Trinity has also announced the filing of the initial Form 10 with the U.S. Securities and
Exchange Commission. The initial Form 10 contains a preliminary information statement providing details related to the business,
strategy, and historical financial results of the new infrastructure company.
“Today’s filing marks an important step in the process toward establishing two independent, publicly-traded companies with
high-performing businesses and long-term growth potential,” said Timothy R. Wallace, Trinity’s Chairman, Chief Executive Officer,
and President. “We believe that this strategic separation will enable both companies to enhance their competitive positions,
advance distinct investment theses, and optimize their balance sheets and capital allocation priorities to achieve the best returns
for their respective stockholders.”
As detailed in the initial Form 10 filing, Arcosa is expected to be a growth-oriented manufacturer and producer of
infrastructure-related products for construction, energy, and transportation markets. With $1.5 billion in 2017 revenues and $132
million in 2017 operating profit, Arcosa plans to leverage its strong platform of businesses to capitalize on North American
economic expansion and infrastructure spending, which should present compelling strategic opportunities. The new company, with a
strong balance sheet and planned committed credit availability and debt capacity, is expected to have the financial flexibility to
pursue organic capital investments and acquisitions. Arcosa will have a leadership team with a track record of growth and the
proven ability to operate efficiently in cyclical markets.
Following the spin-off transaction, Trinity’s business portfolio will include railcar leasing and management services, railcar
manufacturing, railcar maintenance, railcar aftermarket parts, tank car heads manufacturing, and the highway products business.
Trinity will continue to dedicate resources to pursue TrinityRail ® ’s vision of being a
premier provider of rail transportation products and services in North America. TrinityRail is positioned to build upon the
success of its integrated rail business model, generating further growth and differentiation of its multiple, market-leading
platforms while enhancing Trinity’s financial performance, capital structure, and overall value proposition to investors.
In addition, Trinity will maintain ownership and the status quo of the highway products business as it defends pending
highway-related litigation. The Company has positive legal momentum following the favorable Fifth Circuit ruling and continues to
evaluate long-term plans for the highway products business to enhance shareholder value.
The Form 10 is not yet effective and, as is customary, will be updated as additional information about Arcosa becomes
available.
Completion of the spin-off will be subject to, among other things, the effectiveness of the Form 10 registration statement with
the Securities and Exchange Commission, assurance that the separation will be tax-free to Trinity’s stockholders for U.S. federal
income tax purposes, final approval from Trinity’s Board of Directors, and other customary conditions. Trinity may, at any time and
for any reason until the proposed transaction is complete, abandon the separation or modify or change its terms. The separation is
expected to be completed in the fourth quarter of 2018, but there can be no assurance regarding the ultimate timing of the
separation or that the separation will ultimately occur.
For more information, a copy of the Form 10 registration statement is accessible by searching for filings by Arcosa, Inc. (CIK:
0001739445) on the SEC's Edgar reporting system, which can be found at http://www.sec.gov/edgar/searchedgar/companysearch.html. A copy can also be found on the Trinity Spin-Off
section of Trinity’s website at www.trin.net.
J.P. Morgan Securities, LLC is serving as financial advisor to Trinity; Skadden, Arps, Slate Meagher & Flom LLP is serving
as legal counsel; and KPMG LLP is serving as tax advisor. Evercore Group L.L.C. is also advising Trinity in this process.
About Trinity Industries, Inc.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified industrial company that owns complementary
market-leading businesses providing products and services to the energy, chemical, agriculture, transportation, and construction
sectors, among others. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar
Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For
more information, visit: www.trin.net.
Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates,
expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements.
Forward-looking statements may include, but are not limited to, statements regarding the anticipated separation of Trinity into two
separate public companies, the expected timetable for completing the transaction, future financial and operating performance of
each company, benefits and synergies of the transaction, strategic and competitive advantages of each company, future opportunities
for each company and any other statements regarding events or developments that Trinity believes or anticipates will or may occur
in the future. Trinity uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,”
“may,” “will,” “should,” “guidance,” “outlook,” “plans” and similar expressions to identify these forward-looking statements.
Forward-looking statements speak only as of the date of this release, and Trinity expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in
Trinity’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is
based. There is no assurance that the proposed transaction will be completed, that Trinity’s Board of Directors will continue to
pursue a proposed transaction (even if there are no impediments to completion), that Trinity will be able to separate its
businesses, or that the proposed transaction will be the most beneficial alternative considered. Forward-looking statements
involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present
expectations, including but not limited to risks and uncertainties regarding economic, competitive, governmental, and technological
factors affecting Trinity’s operations, markets, products, services and prices, as well as any changes in or abandonment of the
proposed separation or the ability to effect the separation and satisfy the conditions to the proposed separation, and such
forward-looking statements are not guarantees of future performance.
For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the
forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on Form 10-K for the
most recent fiscal year, and as may be revised and updated by our Quarterly Reports on Form 10-Q and Current Reports on Form
8-K.
Trinity Industries, Inc.
Investor Contact:
Preston Bass, 214-631-4420
Director, Investor Relations
or
Media Contact:
Jack Todd, 214-589-8909
Vice President, Public Affairs
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