Icahn to sell American Railcar Leasing for $3.4 billion

Icahn Enterprises LP, owned by billionaire investor Carl Icahn, has agreed to sell its St. Charles-based American Railcar Leasing LLC subsidiary to SMBC Rail Services in a cash deal worth up to $3.4 billion.

SMBC is a unit of Japan’s Sumitomo Mitsui Banking Corp.

The deal is based on an enterprise value of nearly $2.78 billion and a fleet of about 29,000 railcars, officials said Monday.

The deal is slated to close, subject to regulatory approval, in the second quarter next year, after which SMBC Rail will have an option for three years to buy about 4,800 additional railcars for about $586 million, bringing the total sale price to over $3.36 billion, officials said.

Read more: St. Louis Business Journal, St. Louis Post-Dispatch

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