Icahn Enterprises Agrees To Sell American Railcar For $1.75 Bln - Quick Facts

(RTTNews) - Icahn Enterprises LP (IEP) announced Monday that its majority-owned subsidiary, American Railcar Industries, Inc. agreed to merge with a wholly-owned subsidiary of ITE Rail Fund L.P., managed by ITE Management L.P., at a price of $70.00 per share, which is 51% above the October 19, 2018 closing price of $46.29.

The transaction is valued at about $1.75 billion (including ARI's net indebtedness), which is a great result for all ARI shareholders.

Icahn Enterprises first acquired its majority interest in ARI in 2010. With this transaction, IEP's investment in ARI has generated a total return of 423%, for a profit of about $757.2 million.

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. The transaction is not subject to any further due diligence or any financing conditions.