SMBC completes American Railcar Leasing LLC acquisition

Written by William C. Vantuono, Editor-in-Chief
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SMBC Rail Services LLC (SMBC Rail), the railcar operating lessor and fleet management division of Sumitomo Mitsui Banking Corp. (SMBC), on June 1 completed its acquisition of American Railcar Leasing LLC. SMBC Rail, headquartered in Chicago, will maintain an operating and sales office in St. Charles / St. Peters, Mo.

The transaction “will produce a premier full-service lessor of long-lived rolling stock, offering comprehensive rail leasing solutions in North America, with a combined fleet of approximately 50,000-plusrailcars that are positioned to carry a wide variety of commodities and serve a broad range of industries, including energy, steel, agriculture, petrochemical and consumer goods,” SMBC Rail said.

“The highly experienced work force and the combined railcar fleets will allow SMBC Rail to better serve our overall customer base,” said Gene Henneberry, President and Chief Executive Officer of SMBC Rail. “This will be one of the youngest, most efficient rail portfolios in the industry; it will position SMBC as a leader in the rail leasing market for years to come.”

Bank of America Merrill Lynch and SMBC Nikko Securities America, Inc. acted as exclusive financial advisors. Skadden, Arps, Slate, Meagher & Flom, LLP and Chapman and Cutler LLP acted as legal advisor to SMBC in connection with this transaction.

Sumitomo Mitsui Banking Corp. headquartered in Tokyo, Japan, is a wholly owned subsidiary of Sumitomo Mitsui Financial Group, Inc. (SMFG). Listed on the Tokyo, Nagoya and New York (via ADRs) stock exchanges. SMFG, with a market capitalization of approximately US$48 billion, is a leading financial institution in Japan as well as a global provider of financial services.

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