American Railcar Industries, a St. Charles-based designer and manufacturer of railcars, will be acquired for about $1.75 billion by a subsidiary of ITE Rail Fund, the company announced Monday in a press release.
The ITE Rail Fund is managed by ITE Management, an investment firm focused on industrial and transportation assets. ITE is based in New York but has an office in the St. Louis area.
ITE will pay $70 per share, a 51 percent premium over American Railcar’s Friday closing price of $46.29.
Jim Unger, a partner with ITE, helped found American Railcar and served as the company’s president and CEO for more close to 15 years, according to the release.
“(W)e are excited about partnering with the ARI team to support continued growth of the business,” Unger said in the release.
The companies expect the deal to close in the fourth quarter.