Connect with us

Hi, what are you looking for?

Jewish Business News

Business

Carl Icahn to Sell American Railcar For Up to $3.4 Billion

American Railcar Leasing to be sold to a unit of Sumitomo Mitsui Banking Corp.

icahn

 

Activist investor Carl Icahn‘s investment firm, Icahn Enterprises LP sell its wholly-owned subsidiary American Railcar Leasing (ARL) to SMBC Rail Services. Under the terms of the deal, Icahn Enterprises will receive cash based on an enterprise value of $2.78 billion and a fleet of 29, 000 railcars.

Founded in 2004 and based in Saint Charles, Missouri, ARL manages over 40, 000 railroad tank and covered hopper cars and serves the petroleum, chemical, food, agriculture, fertilizer and plastic pellet markets.

SMBC, a subsidiary of Sumitomo Mitsui Banking Corp, will have an option to buy an additional 4, 800 railcars for approximately $586 million, three years after the expected close in in the second quarter of 2017.

Carl Icahn

 

The additional purchase would take the total acquisition price to $3.36 billion.

“I have been in the railcar business for over 30 years. During that time we have built one of the leading railcar fleets in the world.  In fact, if lined up, ARL’s fleet would stretch from New York City to the middle of Ohio, ” said, Carl Icahn, chairman of Icahn Enterprises.

”I am very proud of the business we have built at ARL and am pleased that SMBC Rail Services also sees the tremendous value in this business.  This transaction is a good example of how Icahn Enterprises delivers substantial returns for our equity holders, ” he added.

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

empty

The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

Business

Now Platika joins and elite club of $10 billion plus Israeli firms.

Advertisement
cialis