(Reuters) – American Railcar Industries Inc <ARII.O>, majority-owned by billionaire investor Carl Icahn, is selling itself to ITE Rail Fund in a $1.75 billion deal including debt, the company said on Monday.
Icahn Enterprises said the sale generated a total return of 423 percent for a profit of about $757 million since it first bought a majority stake in the railcar maker in 2010.
The $70 per share offer represents a 51 percent premium to American Railcar’s last closing price on Friday.
Excluding debt, the deal is valued at $1.34 billion.
Icahn owned a 62.21 percent stake in the railcar maker as of June 30, according to Refinitiv data.
ITE Rail Fund LP is managed by investment firm ITE Management LP, with interests in industrial and transportation assets.
(Reporting by Sanjana Shivdas and Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)