American Industrial Transport (AITX) has acquired The Andersons railcar leasing business for approximately USD 550 million in cash. AITX and its affiliates now can offer customers a leasing fleet of approximately 60,000 railcars across a diverse offering of car-types, equipment life-cycles, commodities, and industries-serviced.
“We are incredibly pleased to expand the breadth and depth of our railcar leasing platform and the services AITX can provide. 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,” said Jason Koenig, Managing Partner at ITE and member of the AITX Board of Directors. “
“The strategic decision to sell the railcar 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 thereby enabling us to redeploy capital in a manner that will enhance shareholder returns,” Pat Bowe, President and CEO of The Andersons said.
In the second quarter of 2021 The Andersons reported a net income of USD 43.5 million, and adjusted net income of USD 43.7 million. On an adjusted basis, this was company’s best second quarter since 2014. Adjusted EBITDA was USD 118.1 million, up by USD 48.1 million year over year and represents the highest ever quarterly EBITDA. The rail division reported a pretax income of USD 3.1 million on end-of-life railcar sales.
Founded in Ohio, in 1947, The Andersons is a diversified company rooted in providing innovative agriculture supply chain solutions to its core verticals of grain and fertilizer sectors. Our rail segment the company provides a variety of services to the rail industry, including repair, maintenance, and custom fabrication.
The Andersons owns multiple locations across the continental U.S. providing repair, maintenance, and renovation solutions. The company specialises in railcar conversions and railcar modifications including converting large cube covered hoppers to smaller cube sand cars. The company also operates a state-of-the-art paint and blast facility that includes a wash bay as well as blast, paint and cure booths which allow for high output along with top quality workmanship. Both interior and exterior paint is applied once the surface is blasted with recycled steel shot.
AITX provides solutions to freight shipping customers across railcar leasing, repair, and data. The company is an affiliate of ITE Management L.P., an asset manager targeting transport and industrial assets and companies, and related industries and services.