Icahn Enterprises LP has agreed to sell wholly owned subsidiary American Railcar Leasing LLC to Sumitomo Mitsui Banking Corp.'s SMBC Rail Services LLC.

SMBC Rail Services will pay cash based on an enterprise value of $2.78 billion and a fleet of about 29,000 railcars. It will have an option to buy about 4,800 additional railcars for a period of three years after the initial closing of the transaction, which is expected to occur in the second quarter of 2017.

The purchase price for those additional 4,800 railcars would be about $586 million at the time of initial closing, bringing the total sale price to approximately $3.36 billion.

Deutsche Bank Securities Inc. is serving as exclusive financial adviser, and Thompson Hine LLP is acting as legal counsel for American Railcar Leasing.