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Billionaire investor Carl Icahn is selling St. Charles-based American Railcar Leasing , or ARL, to another railroad car management company owned by a Japanese bank.

Icahn Enterprises announced the agreement Monday to sell ARL to SMBC Rail Services, owned by the Sumitomo Mitsui Banking Corporation. The cash sale price, subject to adjustments, is based on an ARL enterprise value of $2.78 billion and a fleet of 29,000 rail cars.

SMBC will have a three-year option to purchase an additional 4,800 rail cars for $586 million, boosting the total price to $3.36 billion. The deal is expected to close in the second quarter of 2017.

“I have been in the rail car business for over 30 years,” Icahn said in a statement. “During that time we have built one of the leading rail car fleets in the world. ... I am very proud of the business we have built at ARL and am pleased that SMBC Rail Services also sees the tremendous value in this business.”

In 2005, American Railcar Leasing separated from American Railcar Industries Inc., the publicly traded St. Charles company that makes and repairs railroad cars. Icahn is also American Railcar Inc.’s largest shareholder.

ARL markets American Railcar Industries cars for sale and lease and manages their storage, repair and service.

As part of the deal, American Railcar Inc. will assume the management of the cars it owns, and it is barred from hiring certain ARL employees for 24 months. It can, however, hire principal officers of ARL and certain other employees. Those other positions were not identified in a regulatory filing from American Railcar Inc.

Shares of American Railcar Inc. rose $2, or 4.4 percent, to close Monday at $47.38.

Jacob Barker is a business reporter for the Post-Dispatch. 314-340-8291