USA: An agreement for Perella Weinberg Partners' Asset Based Value investment vehicle to acquire the AIG Rail Services wagon leasing business from American International Group was announced on April 19. Financial details were not disclosed.
On completion of the transaction in the second quarter of 2011 Perella Weinberg Partners will have more than 10 000 wagons, which it said would make it the 9th largest lease fleet owner in North America. AIG Rail Services Inc will be converted into a limited liability company called Flagship Rail Services, with Eugene Henneberry remaining as President & CEO.
'We continue to see long-term value in rail, and this transaction will allow us to expand our portfolio of rail-related assets, including railcars, chassis solutions and intermodal leasing', said David Schiff, partner at Perella Weinberg Partners and Asset Based Value portfolio manager. 'Today's announcement reflects our ongoing commitment to pursuing compelling investment opportunities that generate cash flow. Rail remains the most efficient mode of transportation and we expect to benefit from the positive industry dynamics going forward.'