Carl Icahn Rides Cargo Boom to $1.34 Billion Sale of Train-Car Maker

  • Rail-car maker sells out to ITE hedge fund at 51% premium
  • Deal boosts industry as Greenbrier, Trinity both advance
Photographer: Luke Sharrett/Bloomberg
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Billionaire investor Carl Icahn agreed to sell American Railcar Industries Inc. for $1.34 billion, quintupling his investment as a freight boom spurs a rebound in demand for rail equipment.

Icahn Enterprises agreed to sell the maker of tank and hopper cars at $70 a share, 51 percent above its closing price on Oct. 19, to a subsidiary of hedge fund ITE Management LP. The deal is valued at $1.75 billion including debt, Saint Charles, Missouri-based American Railcar said in a statementBloomberg Terminal Monday.