Sumitomo Mitsui Banking’s railcar operating lessor and fleet management business, SMBC Rail Services, signed an agreement to purchase American Railcar Leasing from Icahn Enterprises.

The transaction will create a full service lessor of long-lived rolling stock, offering rail leasing solutions in North America, with a combined fleet of approximately 50,000 railcars. The deal is expected to close in the first half of 2017.

“The combined fleets of SMBC Rail and ARL is an example of two complementary businesses coming together to provide better solutions for our customers. This portfolio will be one of, if not the youngest, most efficient, diversified fleets in the industry,” said Gene Henneberry, president and CEO of SMBC Rail. “We look forward to serving and continuing to grow with our customers.”

SMBC Rail, a North American Railcar Lessor, headquartered in Chicago, was founded in 2006 as AIG Rail Services. In May 2011 AIG Rail Services was purchased by Perella Weinberg Partners Asset Based Value Strategy Fund and transitioned to Flagship Rail Services. In December 2013 Flagship Rail was purchased by Sumitomo Mitsui Banking.