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Broadened Fleet Offering Enhances Railcar Services for Customers; Contributes to Leading Repair Network and Data Solutions
ST. CHARLES, Mo., Aug. 16, 2021 /PRNewswire/ -- American Industrial Transport, Inc. (AITX) announced today that it has acquired the railcar leasing business from The Andersons, Inc. (Nasdaq: ANDE) for approximately $550 million in cash. AITX and its affiliates now can offer customers a leasing fleet of approximately 60,000 railcars across a diverse offering of car-types, equipment life-cycles, commodities, and industries-serviced.
AITX provides solutions to freight shipping customers across railcar leasing, repair, and data. The company is an affiliate of ITE Management L.P., an asset manager targeting transportation and industrial assets and companies, and related industries and services.
"We are incredibly pleased to expand the breadth and depth of our railcar leasing platform and the services AITX can provide. AITX expects to hire a majority of The Andersons employees in the railcar leasing business, and we are pleased to welcome aboard our new team members," said Jason Koenig, Managing Partner at ITE and member of the AITX Board of Directors. "With our more diversified fleet offering and best-in-class repair network, AITX customers now have greater flexibility to meet their rail shipping, servicing, and data needs."
The Andersons is a diversified company rooted in providing innovative agriculture supply chain solutions to its core verticals of grain and fertilizer sectors.
"This railcar leasing business has been a successful and consistent cash flow generator for The Andersons. The strategic decision to sell the leasing business allows us to focus on and invest in our agricultural segments to leverage our core strengths. It also will improve our balance sheet thereby enabling us to redeploy capital in a manner that will enhance shareholder returns," said Pat Bowe, President and CEO of The Andersons. "While we intend to divest our Rail segment in its entirety, we will continue normal operations of our repair and service business as we conduct a sale process."
"The employees involved are among the most skilled and experienced in the railcar leasing industry, and they have been critical to our success," commented Joe McNeely, President, The Andersons Nutrient and Industrial Group. "We deeply value their contributions and thank them for their commitment to The Andersons. We're determined to make their transitions as smooth as possible."
About American Industrial Transport, Inc.
American Industrial Transport, Inc. is a leading railcar service provider with solutions across leasing, repair, and railcar data. AITX's broad and diverse railcar leasing fleet offers customers shipping flexibility and a portfolio of financing options. AITX's best-in-class railcar repair network spans across North America with capabilities across full-service repair, mobile operations, and onsite partnership. For more information, please visit www.aitx.com.
About ITE Management L.P.
ITE Management is an investment firm specializing in transportation and industrial assets and companies, with a critical focus on generating current yields, long-term uncorrelated returns, and positive risk characteristics. ITE Management works directly with operators to build a diversified portfolio across hard asset verticals. For more information, visit www.itemgmt.com.
American Industrial Transport, Inc.
Director, Legal and Corporate Compliance
SOURCE American Industrial Transport, Inc.