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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

ITE Management L.P. Affiliate Agrees to Acquire SMBC Rail Services

Sumitomo Mitsui Financial Group (collectively, SMBC Group, President and Group CEO Jun Ohta) and ITE Management L.P. (ITE), an investment firm specializing in industrial transportation assets and infrastructure, announced today that an affiliate of ITE has agreed to acquire SMBC Rail Services LLC (SMBC RS) from SMBC Americas Holdings, Inc. (SMBCAH), a member of SMBC Group. Following the closing of the acquisition, it is expected that the SMBC RS railcars and certain other assets of SMBC RS will be transferred to American Industrial Transport, Inc. (AITX). AITX is a railcar services solution provider and SMBC RS is a premier, full-service lessor of rolling stock, offering comprehensive rail leasing solutions in North America. The transaction is subject to customary conditions to closing, including receipt of regulatory approvals.

Over the past ten years, SMBC Group has transformed SMBC RS through ongoing fleet reinvestment, repositioning, organic growth, and acquisition. Today, SMBC RS’ diversification strategy across a broad customer base and end markets has accelerated its ability to serve a wider range of clients with enhanced capabilities. With a decade of continuous investment by SMBC, SMBC RS has maintained its competitiveness in the railcar business.

As one of the leading full-service railcar platforms in North America, AITX provides an integrated, customer-centric solution to the freight shipping market through its expansive leasing offering and its railcar repair and maintenance network. The transaction will add over 50,000 additional railcars to AITX’s fleet, along with an experienced team and longstanding customer relationships. The transaction will enable AITX to create significant incremental value for customers, employees, and all stakeholders.

This divesture also supports SMBC Group’s Medium Term Management Plan and commitment to focus on its U.S. business and realize its long-term vision through the reallocation of capital and resources to core growth business areas, including its corporate investment bank, sales & trading division, and its new digital bank, Jenius Bank.

About SMBC Group

SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 150 offices and 86,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG’s shares trade on the Tokyo, Nagoya, and ADRs on the New York (NYSE: SMFG) stock exchanges.

In the Americas, SMBC Group has a presence in the U.S., Canada, Mexico, Brazil, Chile, Colombia, and Peru. Backed by the capital strength of SMBC Group and the value of its relationships in Asia, the Group offers a range of commercial and investment banking services to its corporate, institutional, and municipal clients. It connects a diverse client base to local markets and the organization’s extensive global network. The Group’s operating companies in the Americas include Sumitomo Mitsui Banking Corp. (SMBC), SMBC Nikko Securities America, Inc., SMBC Nikko Securities Canada, Ltd., SMBC Capital Markets, Inc., SMBC Rail Services LLC, Manufacturers Bank, JRI America, Inc., SMBC Leasing and Finance, Inc., Banco Sumitomo Mitsui Brasileiro S.A., and Sumitomo Mitsui Finance and Leasing Co., Ltd. For more information, please visit www.smbcgroup.com.

About ITE

ITE is an investment firm that targets transportation and industrial assets, companies, and related services, with a critical focus on generating current yields, long-term uncorrelated returns, and positive risk characteristics. Over the last 10 years, ITE has worked directly with operators to build a diversified portfolio across hard asset verticals. Its focused approach maximizes the firm's teams of experts across asset and portfolio management, operating partnerships, data analysis, and risk management. For more information, please visit www.itemgmt.com.

About AITX

AITX is a leading service provider with integrated solutions across leasing, fleet management, repair, and railcar data. AITX provides shipping customers across North America and Europe a broad and diverse railcar lease fleet. AITX’s best-in-class railcar repair facilities provide capabilities across full-service repair, mobile operations, onsite partnerships, and railcar storage. For more information, please visit www.aitx.com.

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