Chicago-based Freightcar America (NASDAQ:RAIL) said Wednesday it will acquire the business assets of DTE Energy’s (NYSE:DTE) railroad subsidiary for $23.2 million.

The railroad freight car builder plans to purchase the natural gas utility’s DTE Rail Services business in an attempt to expand its presence in the railcar services sector, the company said in a statement.

Once the transaction is completed, slated for the fourth quarter of this year, DTE Rail will merge with Freightcar America’s existing parts and repair services unit, expanding its array of offerings to include repair and maintenance, inspection, and fleet management services for all types of freight-carrying railcars.

“The expansion of our railcar services activities will diversify our revenue sources and will serve to lessen the cyclicality of our earnings,” Freightcar America CEO Ed Whalen said. “Going forward, we expect that this addition will expand our customer base and strengthen existing relationships by significantly enhancing the company’s involvement in the entire railcar life cycle.”

The acquired business, to be known as Freightcar Rail Services, will help the company target coal-carrying railcars moving through the Powder River Basin, adding DTE Rail’s Colorado, Indiana and Nebraska units.

The deal will also add about 130 skilled workers to the company.

Freightcar America said the acquisition of DTE Rail, which produces annualized revenues of approximately $25 million, will immediately help boost earnings.