American Industrial Transport acquires railcar assets from SMBC Rail Services

American Industrial Transport, Inc. (“AITX“), an affiliate of the investment firm ITE Management L.P. (“ITE”), specializing in industrial transportation assets and related infrastructure, has officially completed the acquisition of select railcar assets and operations from SMBC Rail Services LLC (“SMBC RS”). This strategic move reinforces AITX’s status as a full-service provider in the industrial freight shipping market.

Expanding Railcar Fleet and Expertise

The acquisition marks a significant milestone for AITX, adding a diversified fleet of over 50,000 railcars to its portfolio. This expansion not only enhances AITX’s asset base but also welcomes new customers and team members, enriching the company’s expertise in the rail industry.

Integrated Solutions for Rail Logistics

AITX, known for its comprehensive railcar leasing and fleet management services, has now elevated its position as an integrated solution provider. The company’s service range spans across leasing, repair, maintenance, technology, and other related areas. This transaction boosts AITX’s leasing portfolio to nearly 120,000 railcars, further solidifying its ability to cater to the dynamic needs of shippers and railroads.

AITX Expands Railcar Fleet with Strategic Acquisition of SMBC RS Assets

Expanding Repair and Maintenance Network

AITX has been on an expansion spree, enhancing its repair and maintenance network across North America. This includes new full-service tank car facilities at its Brookhaven, Mississippi location. These developments are part of AITX’s commitment to ensuring efficient rail logistics and product movement for its clients.

Leadership Announcements

Michael McCarthy takes the helm as President of AITX, bringing a decade of experience from SMBC RS, including his tenure as CEO. His experience at GE Rail Services and GATX will be invaluable in guiding AITX’s future. Texas Howard is named Chief Operating Officer, tasked with overseeing fleet and repair operations across the US and Europe. Howard’s leadership has been instrumental in AITX’s growth and capital investment cycle.

Commitment to Customer Service and Growth

Both McCarthy and Howard emphasize AITX’s dedication to customer service, safety, and quality. AITX’s integrated scale and expertise in railcar leasing, logistics, and repair services position it to meet and exceed customer goals effectively. Howard highlights AITX and ITE Management’s investment in resources, setting the stage for further success and growth.

Financial and Legal Advisory for the Acquisition

Deutsche Bank Securities Inc., Citi, JP Morgan, Goldman Sachs, and RBC Capital Markets LLC provided advisory services to ITE Management for this acquisition. Financing was led by Bank of America, supported by a consortium of arrangers and lenders. Legal advice was provided by Willkie Farr & Gallagher LLP and Vedder Price LLP.