LOS ANGELES A
key executive in Carl C. Icahns railcar holdings has
resigned as the billionaire investor reignites his effort to
expand his holdings in the industry.
St. Charles, Mo.-based
American Railcar Industries Inc. has named Jeffrey S. Hollister
as president and interim chief executive officer in the wake of
James Cowans resignation from the posts "to pursue other
interests," the company said.
resignation came less than three weeks after the announcement
of a planned restructuring in American Railcars
ownership. Hollister joined American Railcar in 2005 and most
recently headed its rail car manufacturing group.
Cowan, who was with
American Railcar for nearly eight years, said in a statement
that he is "proud of the companys many achievements." No
further details were disclosed regarding his plans.
American Railcar, a
builder of hopper and tank cars, is considered one of the
largest U.S. rail car manufacturers, along with Lake Oswego,
Ore.-based Greenbrier Cos., Dallas-based Trinity Industries
Inc. and Chicago-based FreightCar America Inc. The tank car
market has benefited this year in particular from strong
Icahn Enterprises LP
last month said it was forming a joint venture, American
Railcar Leasing LLC (ARL), that would look for "undervalued
companies" in the industry.
The transaction will
"result in a multibillion-dollar rail car segment at (Icahn
Enterprises)," consisting of American Railcar Industries, a
large rail car repair and fleet management business, and a
combined lease fleet of roughly 32,500 rail cars, Icahn
Enterprises said at the time.
The company described
the rail car industry as "a strong growth business," noting
that it has "high expectations for the entire segment." Icahn
Enterprises said it will contribute to ARL cash and rail car
assets with an aggregate value of about $737 million in
exchange for its 75-percent ownership interest.
The new company could
benefit from Icahn Enterprises "unparalleled experience
in activism and significant capital with access to
debt capital at advantageous borrowing rates," it said at the
Late last year, Icahn
failed in his effort to create the largest North American rail
car builder when American Railcar was forced to throw in the
towel on its $597-million bid to acquire control of Greenbrier.
Icahn unloaded most of his Greenbrier stock after the company
spurned American Railcars offer (
amm.com, Dec. 28).