NEW YORK, April 18, 2019 — ITE Management L.P. (“ITE”) is pleased to announce that its wholly-owned subsidiary, American Railcar Industries, Inc. (“ARI” or the “Company”), has entered into a definitive agreement for the sale of the manufacturing business assets of ARI to The Greenbrier Companies, Inc. (“Greenbrier”). The transaction contemplates the sale of certain assets and assumed liabilities of ARI’s manufacturing business for $430M (subject to balance sheet adjustments) consisting of cash and convertible debt. ITE Rail Fund L.P. completed the acquisition and take-private of ARI five months ago, on December 5, 2018, and will continue to own the maintenance and servicing, and leasing businesses, along with the more than 14,000 railcars associated with the leasing business, which is part of its portfolio of over 30,000 railcars.
Through the sale of ARI’s manufacturing business, ITE and Greenbrier will continue to grow their respective businesses to create a better long-term leasing and operating platform to provide best-in-class railcars and services to North America’s industrial companies.
Jason Koenig, a Partner of ITE, commented, “We think this transaction will provide great long-term benefits for ARI’s customers and employees. The sale of the manufacturing business to Greenbrier is the next phase of ITE’s broad strategic operating plan in the freight railcar business. We now have one of the larger railcar fleets in North America, top tier maintenance and servicing operations, and a great relationship with a leading manufacturer in Greenbrier. ITE continues its focus on working with great people, companies, and partners to build and move America’s infrastructure.”
The transaction is subject to regulatory review prior to closing.
Deutsche Bank Securities Inc. acted as financial advisor and Willkie Farr & Gallagher acted as legal counsel to ARI in connection with the proposed transaction.