Perella Weinberg Partners has agreed to buy AIG Rail Services. Financial terms weren’t announced. The company will be converted into an LLC and continue operating as Flagship Rail Services. Eugene Henneberry will remain president and CEO of the company. The deal is expected to close in second quarter.
Perella Weinberg Partners and American International Group, Inc. (AIG) today announced that an affiliate of Perella Weinberg Partners’ Asset Based Value strategy has entered into a definitive agreement to acquire AIG Rail Services Inc., a provider of customized full service and net leases servicing the railroad marketplace. Financial terms of the transaction were not disclosed.
As part of the transaction, certain funds within the Asset Based Value strategy have formed a new entity to purchase and manage AIG Rail Services Inc., which will be converted into a limited liability company as part of the transactions and continue operations under the name Flagship Rail Services LLC. Eugene Henneberry, President and Chief Executive Officer of AIG Rail Services, will assume the title of President and Chief Executive Officer of Flagship Rail Services and will continue to run the business, along with AIG Rail Services’ existing management team. Subject to certain conditions, the transaction is expected to close in the second quarter of 2011.
Through this transaction, Perella Weinberg Partners’ Asset Based Value strategy will continue to expand its rail leasing and investment effort. Upon consummation of the transaction, the Asset Based Value strategy will own over 10,000 railcars that are deployed in the North American rail industry, making it the 9th largest lessor of railcars in the region.
David Schiff, Partner at Perella Weinberg Partners and Portfolio Manager of the Asset Based Value strategy, stated, “Today’s announcement reflects our ongoing commitment to pursuing compelling investment opportunities that generate cash flow. 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. Rail remains the most efficient mode of transportation and we expect to benefit from the positive industry dynamics going forward.”
Eugene Henneberry, President and Chief Executive Officer of AIG Rail Services, said, “This transaction enables the AIG Rail Services employees and management team to partner with David Schiff and his team to continue providing our clients with the best-in-class service that they have come to expect. We are pleased to be joining forces with such an experienced team that shares our desire to grow Flagship Rail Services.”
Perella Weinberg Partners’ Asset Based Value strategy is a leading post-financial crisis provider of U.S. specialty finance solutions. Since inception in 2008, the strategy has grown to manage in excess of $1 billion in equity capital through a number of different investment vehicles. It can deliver significant capital, technical expertise and infrastructure in a wide range of asset classes and structures, including both real and financial assets. The strategy strives to diligence and execute transactions discretely and efficiently. Capital for the strategy is contributed by, among others, a diversified group of institutional investors who seek to invest in compelling opportunities at favorable valuations.
About Perella Weinberg Partners
Perella Weinberg Partners is a leading independent, client-focused financial services firm that provides corporate advisory and asset management services to clients around the world. Launched in 2006, the Firm is a private limited partnership with more than 330 employees recruited from a wide variety of leading financial institutions.
With over 100 employees, the Firm’s asset management activities include a suite of hedge fund strategies, private capital and a multi-manager business. Investments made through these strategies include most major asset classes on a global basis, including equities, fixed income, asset based securities, distressed securities, private investments, and real estate. The global asset management business, including affiliates, has capital commitments and managed assets of over $7.7 billion.
The corporate advisory business provides high quality, independent advice and transaction execution capabilities, including mergers and acquisitions, exclusive sales, defense advisory, financial restructuring, private capital, and pension advisory.
The Firm has offices in New York, London, Abu Dhabi, Denver, Austin, and San Francisco. Biographies and additional information are available at www.pwpartners.com.
About American International Group, Inc.
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
About AIG Rail Services, Inc.
AIG Rail Services, Inc., a subsidiary of American International Group, Inc. (AIG), provides customized full service and net leases to serve the railroad marketplace. Our team of industry veterans provides comprehensive railcar knowledge, financial structuring expertise, and customer responsiveness to fulfill your railcar transportation requirements.