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ITE Affiliate Agrees to Acquire SMBC Rail Services

New York – November 7, 2023 – 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.