CHICAGO (May 11) — Johnstown America Industries Inc. will sell its railcar building operations to a management-led group for about $134.4 million in cash and assumed debt.

The deal will allow Chicago-based JAII to focus on building heavy-duty truck components, a market that’s less susceptible to economic shifts than producing freight cars, the company said.

JAII’s truck components business includes Gunite wheel-end components, Brillion custom iron castings, Bostrom truck and bus seating systems, and Fabco steerable drive axles and gearboxes.

Earlier this year, JAII bought Imperial Group of Portland, Tenn., a supplier of heavy-duty body and chassis.

“Even though our heavy-duty truck components operations are growing, highly respected, and consistent profit generators, many investors still view JAII primarily as a cyclical freight car manufacturer,” said chairman Thomas Begel. “Shares of truck components manufacturers typically sell at a significantly higher price/earnings multiple.”