NEW YORK, June 01, 2017 (GLOBE NEWSWIRE) -- Icahn Enterprises L.P. (NASDAQ:IEP) today announced that it completed the initial closing of its previously announced sale of its indirectly wholly-owned subsidiary American Railcar Leasing LLC to SMBC Rail Services LLC (“SMBC Rail”), a wholly-owned subsidiary of Sumitomo Mitsui Banking Corporation. In addition, as previously disclosed, for a period of three years from today’s initial closing, upon satisfaction of certain conditions, the sellers have an option to sell, and SMBC Rail has an option to buy, approximately 4,600 additional railcars.

IEP acquired 100% of the membership interests of ARL from Carl C. Icahn in a series of transactions beginning in the fourth quarter of 2013 in exchange for total consideration of approximately $772 million. After repaying (or assigning to SMBC Rail) applicable indebtedness, IEP received cash consideration of approximately $1,282 million at today’s initial closing. In addition, had the conditions to seller’s option been satisfied (and the option exercised) at today’s initial closing, IEP would have received cash consideration of approximately $561 million for the 4,600 additional railcars, which would have resulted in total cash consideration of approximately $1,843 million for ARL’s full fleet of railcars – approximately $1,071 million more than the total consideration paid by IEP for the membership interests of ARL. No assurance can be given that the conditions to seller’s option will be satisfied or that the option will be exercised.

Icahn Enterprises L.P. (NASDAQ:IEP), a master limited partnership, is a diversified holding company engaged in ten primary business segments: Investment, Automotive, Energy, Metals, Railcar, Gaming, Mining, Food Packaging, Real Estate and Home Fashion.