Icahn Enterprises (IEP) announced it has entered into an agreement with its chairman, Carl C. Icahn, to form a joint venture, American Railcar Leasing (New ARL). IEP will own 75% of New ARL.
IEP has agreed to contribute cash and railcar assets having an aggregate value of approximately $737 million to New ARL in exchange for its 75% ownership interest. In fiscal year 2014, its 75% ownership interest in New ARL is expected to generate operating income attributable to IEP of between $120 million and $125 million, and EBITDA attributable to IEP of between $175 million and $185 million.1
Carl C. Icahn, chairman, stated: “This transaction will result in a multi-billion dollar railcar segment at IEP, consisting of: (i) American Railcar Industries(one of the leading North American manufacturers of tank and hopper railcars); (ii) a large and growing railcar repair and fleet management business; and (iii) a combined lease fleet of approximately 32,500 railcars. We believe that the railcar business is a strong growth business and have high expectations for the entire segment.”
To read the Icahn Enterprises news release click here.
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