Sumitomo Mitsui Banking Corp. said Tuesday that it will buy U.S. freight car leasing firm American Railcar Leasing LLC for roughly $2.8 billion, eyeing a boost in its earnings on the brighter U.S. economic outlook.
The Japanese bank plans to acquire all shares in the Missouri-based company from an investment fund by June 2017. It is considering merging American Railcar Leasing with another freight car leasing firm it bought in December 2013.
The U.S. economy is gaining momentum with the election of Donald Trump, who has vowed to boost spending on the nation's infrastructure. Sumitomo Mitsui is hoping for a profit boost in the leasing business as logistics activity tends to ramp up in conjunction with economic growth, according to the bank.
American Railcar Leasing owns roughly 34,300 cars and is ranked sixth in the U.S. freight car leasing industry. The firm does business with approximately 340 companies and transports a wide range of goods, including agricultural produce, chemical goods and natural resources.