USA: The Andersons has sold its wagon leasing business to American Industrial Transport for $550m, and is also planning to divest its wagon repair business which includes 29 facilities across the USA.
‘This railcar leasing business has been a successful and consistent cash flow generator’, said The Andersons President & CEO Pat Bowe on August 16. ‘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.’
He added that ‘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 acquisition takes AITX’s wagon fleet to 60 000 vehicles. ‘We are incredibly pleased to expand the breadth and depth of our railcar leasing platform and the services AITX can provide’, said Jason Koenig, a member of the AITX board and managing partner of its parent company industrial asset group ITE Management.
‘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.
‘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.’
BofA Securities is serving as financial advisers to The Andersons, with Dentons acting as legal counsel. Agentis Capital is serving as a financial adviser to AITX, with Willkie Farr & Gallagher and Vedder Price as legal counsel.
