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Icahn-backed American Railcar to sell itself in $1.75 billion deal

October 22, 2018 at 07:46 am EDT

(Reuters) - American Railcar Industries Inc, majority-owned by billionaire investor Carl Icahn, is selling itself to ITE Rail Fund in a $1.75 billion deal including debt, the company said on Monday.

Icahn Enterprises said the sale generated a total return of 423 percent for a profit of about $757 million since it first bought a majority stake in the railcar maker in 2010.

The $70 per share offer represents a 51 percent premium to American Railcar's last closing price on Friday.

Excluding debt, the deal is valued at $1.34 billion.

Icahn owned a 62.21 percent stake in the railcar maker as of June 30, according to Refinitiv data.

ITE Rail Fund LP is managed by investment firm ITE Management LP, with interests in industrial and transportation assets.

(Reporting by Sanjana Shivdas and Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)

Carl Icahn

Mr. Carl C. Icahn is a Chairman at CVR Refining GP LLC, at Icahn Enterprises G.P. Inc., at Icahn Enterprises Holdings LP, at Starfire Holding Corp., at ACF Industries LLC, at Atlantic Coast Entertainment Holdings, Inc., at Greate Bay Hotel & Casino, Inc., at Icahn Enterprises Finance Corp., at Icahn Enterprises LP, a Chief Executive Officer at Icahn Capital LP, at General Partners LLC at GB Property Funding Corp., and a Chairman of the Board at Icahn Associates Holding LLC. Mr. Icahn was previously employed as a Chairman by CVR Refining LP, by GB Holdings, Inc., by Maupintour Holding LLC, by American Railcar Industries, Inc., by CVR Energy, Inc., by XO Communications, Inc., by Tropicana Entertainment, Inc., by WCI Communities, Inc., by ImClone Systems, Inc., a Non-Executive Chairman by Federal-Mogul Corp., by Federal-Mogul LLC, by Federal-Mogul Holdings Corp., a Chief Executive Officer by Icahn Capital Management LP, by Icahn Management LP, a Member chCCI Offshore LLC, by Financial Industry Regulatory Authority, Inc., by National Association of Securities Dealers, Inc., by National Association of Securities Professionals, by CCI Onshore LLC, a Chairman & President by XO Holdings, Inc., a President & Director by Stratosphere Corp., a General Partner by American Real Estate Partners LP, a Chairman & President by Icahn & Co., Inc., a Non-Executive Chairman by Federal-Mogul Motorparts LLC, an Owner by Sands Hotel & Casino /Atlantic City/, by Stratosphere Hotel, and a Chairman & Chief Executive Officer by Trans World Airlines, Inc. He received his undergraduate degree from Princeton University.

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Icahn Associates Holding LLC Icahn Associates Holding LLC Investment ManagersFinance Icahn Associates Holding LLC is an independent hedge fund manager headquartered in New York City. The firm is affiliated with Icahn Enterprises LP (NASDAQ: IEP), a Delaware master limited partnership and diversified holding company engaged in nine primary business segments: Investment, Automotive, Energy, Railcar, Mining, Food Packaging, Metals, Real Estate and Home Fashion. Icahn Associates Holding manages assets of high net-worth clients.	Chairman
ACF Industries LLC ACF Industries LLC Wholesale DistributorsDistribution Services ACF Industries LLC manufactures and fabricates railcar parts and miscellaneous steel products. Its capabilities include car conversions, repair programs, welded sub-assemblies, pressure vessels, railcar wheel, and axle machining & mounting. The company was founded in 1899 and is headquartered in St. Charles, MO.	Chairman

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