American Railcar Industries

American Railcar Industries
Traded as NASDAQ: ARII
Russell 2000 Component

American Railcar Industries is an American manufacturer and maintainer of hopper and tanker railcars,[1] headquartered in Saint Charles, Missouri. Through its subsidiary American Railcar Leasing (ARL) it also leases railcars in the covered hopper and specialized tank car markets.[2][3] As of 2013, investor Carl Icahn owns a controlling interest in both companies.[4][5][6]


History

ARI was formed in 1994 as a subsidiary of ACF Industries (ACF), which had been leasing railcars since 1923.[7] At that time ARI manufactured components for railcars, and also provided painting, repair and fleet management services. By 1999, the company was manufacturing both hopper and tanker cars.

In 2004 ARI formed a subsidiary company, American Railcar Leasing. This new company in turn acquired, via a series of transfer transactions between the related companies, the railcars and related leases from ACF Industries.[8]

In 2006, ARI expanded by purchasing Custom Steel, a railcar parts manufacturer which had been owned by Steel industries.[9][10]

In 2009, the company reincorporated in North Dakota to take advantage of the North Dakota Publicly Traded Corporations Act.[11]

American Railcar Leasing

In 2014, ARL owns over 25,000 tank and covered hopper cars (with their two most common reporting marks being ACFX and SHPX) and serves the petroleum, chemical, food, agriculture, fertilizer and plastic pellet markets. In 2006 this totalled more than 10% of the lease cars in the United States.[9][12]

The tank cars are used for a variety of liquid and liquified gas commodities such as vegetable oils, asphalt, various chemicals, LPGs and petroleum products. ARL's covered hopper cars are used for transporting commodities such as grains, plastic pellets, flour, sugar and various minerals.[13]

ARL is headquartered in St. Charles, Missouri, a suburb of St. Louis, Missouri. They have five sales offices located in St. Charles, Missouri, Pointe-Claire, QC, Rochelle Park, NJ, Hinsdale, IL, and The Woodlands, TX.

On June 1, 2017, Sumitomo Mitsui Banking Corporation announced that its railcar operating lessor and fleet management business, SMBC Rail Services LLC (SMBC Rail), had acquired American Railcar Leasing.[14]

References

  1. ↑ William D. Middleton; George M. Smerk; Roberta L. Diehl (2007). Encyclopedia of North American Railroads. Indiana University Press. p. 116. ISBN 978-0-253-34916-3.
  2. ↑ "American Railcar Leasing LLC (ARL LLC)". Progressive Railroading. Retrieved 7 March 2014.
  3. ↑ "American Railcar Industries, Inc. (NASDAQ:ARII) Price Target Update". Insider Trading Report. Amy Troum August 28, 2015.
  4. ↑ "Icahn reshuffles control of American Railcar Leasing". Jewish Business News]
  5. ↑ "Icahn reshuffles control of American Railcar Leasing" ST Louis Dispatch Today Business section article]
  6. ↑ Standard & Poor's Creditweek. Standard & Poor's Corporation. March 1986. p. 140.
  7. ↑ "Company Overview of American Railcar Leasing LLC". Bloomberg Businessweek. Retrieved 7 March 2014.
  8. ↑ Gary Hoover; Hoover's (2002). Hoover's MasterList of Major U.S. Companies. Reference Press.
  9. 1 2 Hoover's. Hoover's Handbook of Emerging Companies. Hoover's. p. 32.
  10. ↑ Kevin EuDaly; Mike Schafer; Steve Jessup; Jim Boyd; Steve Glischinski; Andrew McBride (15 July 2009). The Complete Book of North American Railroading. MBI Publishing Company. pp. 261–. ISBN 978-1-61673-118-2.
  11. ↑ Jay W. Eisenhofer; Michael J. Barry (1 January 2005). Shareholder Activism Handbook. Aspen Publishers. pp. 7–. ISBN 978-0-7355-5700-0.
  12. ↑ "Icahn Enterprises: A Buy at Its Current Price". GuruFocus, August 18, 2015
  13. ↑ "Carl Icahn Adds To Quiet Empire With $340 Million Auto Deal". Forbes.
  14. ↑ "SMBC Rail acquires American Railcar Leasing". Progressive Railroading. June 2, 2017.
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