ITE Management Acquires American Railcar Industries from Icahn Enterprises for Approximately $1.75 Billion

October 24,2018

Willkie advised ITE in the transaction.

On October 22, it was announced that American Railcar Industries, Inc. (ARI), a majority-owned subsidiary of Icahn Enterprises L.P. (NASDAQ: IEP), will be acquired by a subsidiary of ITE Rail Fund L.P., managed by investment firm ITE Management L.P., at a price of $70.00 per share. The transaction is valued at approximately $1.75 billion, including debt. 

Icahn Enterprises first acquired a majority interest in American Railcar, a prominent designer and manufacturer of hopper and tank railcars, in 2010. American Railcar manufactures and sells railcars, custom designed railcar parts, and other industrial products. ARI and its subsidiaries also lease railcars manufactured to certain markets, and provides railcar repair services through its various repair facilities, including mini-shops and mobile units.

Icahn Enterprises is a diversified holding company engaged in nine primary business segments: investment, automotive, energy, mining, railcar, food packaging, metals, real estate and home fashion.

ITE Rail Fund LP is managed by investment firm ITE Management LP, an investment firm targeting industrial and transportation assets and companies, and related industries and services. ITE Management’s investment strategies focus on broad macro-economic themes. 

The Willkie deal team was led by partners William Gump and Bradley Friedman and included partner Joshua Deason and associates Jonathan Kubek and Justin Sommerkamp.