American Railcar Industries, Inc.(ARI), a U.S.-based hopper and tank railcars company, announced that it has entered into a definitive agreement to merge with Icahn Enterprises L.P., a wholly-owned subsidiary of ITE Rail Fund L.P. managed by investment firm ITE Management L.P., at a price of $70 per share, which is 51 percent above the closing price of $46.29.
The transaction is valued at approximately $1.75 billion, including ARI’s net indebtedness, which is a great result for all ARI shareholders.
The transaction is expected to close in the fourth quarter of 2018, subject to termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions.
ARI expects to work with the ITE team to continue to improve its business and grow in the years to come.