MORRISTOWN, N.J., March 5, 2019 /PRNewswire/ -- The InStar Group (Instar), a full-service railcar leasing company established in partnership with Sightway Capital, a Two Sigma company, announced today an agreement to purchase 2,146 railcars from transportation finance and logistics company CAI International. The purchase significantly expands the fleet of railcars owned by Instar and is the largest purchase by the company since its inception in 2016.
"This purchase marks a significant milestone for InStar and will immediately allow us to better serve our customers," said Umesh Choksi, President and CEO of Instar. "We pride ourselves on providing comprehensive services and solutions to North American shippers and railroads, and the expansion of our fleet allows us to provide a more diverse product offering while further developing our services."
The sale of 1,946 railcars has been completed, and a remaining 200 railcars are currently being manufactured. The sale of those railcars is expected to be completed in the second quarter of 2019.
The InStar Group
The InStar Group (Instar) is a full-service railcar leasing company established in 2016 in partnership with Sightway Capital, a Two Sigma company. Instar invests in and offers new and existing railcars across various industries and commodities, which the company believes provides consistent cash flow. The company is flexible with its approach to investing in railcars and has the ability to own outright, participate in lease in/lease out arrangements, sale-leasebacks, joint ventures or provide structured financial products for its customers. The management team is composed of seasoned industry professionals with manufacturing, leasing, railcar portfolio management, and financing expertise.
Sightway Capital is a Two Sigma company focused on private equity investments. The firm employs a principal mindset and flexible capital approach to building successful business platforms with experienced operators and strategic partners. Sightway targets business opportunities that afford both asymmetric risk rewards and enterprise value creation over time. The firm looks for opportunities in and around several asset-intensive industries where the team has significant experience and a network of longstanding relationships.
Edelman for The InStar Group
SOURCE The InStar Group