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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

ITE Management L.P. Announces the Sale of the Manufacturing Business of American Railcar Industries, Inc. to the Greenbrier Companies, Inc.

April 18, 2019

NEW YORK, April 18, 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 entered into a definitive agreement for the sale of the manufacturing business assets of ARI to The Greenbrier Companies, Inc. (“Greenbrier”). The transaction contemplates the sale of certain assets and assumed liabilities of ARI’s manufacturing business for $430M (subject to balance sheet adjustments) consisting of cash and convertible debt. ITE Rail Fund L.P. completed the acquisition and take-private of ARI five months ago, on December 5, 2018, and will continue to own the maintenance and servicing, and leasing businesses, along with the more than 14,000 railcars associated with the leasing business, which is part of its portfolio of over 30,000 railcars.

Through the sale of ARI’s manufacturing business, ITE and Greenbrier will continue to grow their respective businesses to create a better long-term leasing and operating platform to provide best-in-class railcars and services to North America’s industrial companies.

Jason Koenig, a Partner of ITE, commented, “We think this transaction will provide great long-term benefits for ARI’s customers and employees. The sale of the manufacturing business to Greenbrier is the next phase of ITE’s broad strategic operating plan in the freight railcar business. We now have one of the larger railcar fleets in North America, top tier maintenance and servicing operations, and a great relationship with a leading manufacturer in Greenbrier. ITE continues its focus on working with great people, companies, and partners to build and move America’s infrastructure.”

The transaction is subject to regulatory review prior to closing.

Deutsche Bank Securities Inc. acted as financial advisor and Willkie Farr & Gallagher acted as legal counsel to ARI in connection with the proposed 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 DisclaimerThis 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.

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