NEW YORK, July 29, 2019 (GLOBE NEWSWIRE) -- ITE Management L.P. (“ITE”) is pleased to announce that its wholly-owned subsidiary, American Railcar Industries, Inc. (“ARI” or the “Company”), has closed on the sale of its manufacturing business assets to The Greenbrier Companies, Inc. (“Greenbrier”). The sale is of certain assets and assumed liabilities of ARI’s manufacturing business and is valued at approximately $430M, consisting of cash and convertible debt.
ITE completed the acquisition and take-private of ARI on December 5, 2018. ARI will continue to own the maintenance and repair, and servicing businesses as part of an integrated platform to serve ITE’s portfolio of nearly 30,000 railcars. The successful spin-out of the manufacturing assets reflects the next phase in ITE’s broader strategic plan as a top-tier, long-term operating platform providing best-in-class railcars and services to industrial companies.
“Our focus is on increasing value in the rail business by working with great people, companies, and partners to build and move America’s essential assets,” said Jason Koenig, a Managing Partner at ITE.
Credit Suisse acted as structuring agent and arranger for the financing for the acquisition of ARI by ITE, Deutsche Bank Securities Inc. acted as financial advisor and Willkie Farr & Gallagher acted as legal counsel to ARI in connection with the transaction.
About ITE Management L.P.
ITE Management, an affiliate of ITE Rail Fund L.P., is an investment firm targeting industrial and transportation assets and companies, and related industries and services with a critical focus on investments that generate current cash. ITE Management’s investment strategies focus on broad macro-economic themes. The principals of ITE Management are seasoned industry professionals in investments, investment management, banking, manufacturing and leasing with an average of over 25 years of experience.
Forward Looking Statement Disclaimer
This release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, many of which are beyond our ability to control or predict. Forward-looking statements may be identified by words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will” or words of similar meaning. These forward-looking statements involve risks, assumptions, and uncertainties, including, but not limited to, risks related to the ability to realize the anticipated benefits of the transaction; the ability to retain certain key employees of the Company; and other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. Therefore, you should not rely on any of these forward-looking statements, which speak only as of the date they are made and are not guarantees of future performance. The Company expressly disclaims any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.
For More Information Contact:
Anna Thurston
ITE Management L.P.
(212) 390-1820
athurston@itemgmt.com