GATX Corporation and Brookfield Infrastructure Partners L.P. have recently announced the acquisition of Wells Fargo’s rail assets. The joint venture will acquire approximately 105,000 railcars, while Brookfield Infrastructure will directly acquire approximately 23,000 railcars and 440 locomotives. The total value of the acquisition is $4.4 billion.
GATX will serve as the manager of the railcars in the joint venture and the finance lease railcars and locomotives directly owned by Brookfield Infrastructure. The initial equity ownership in the joint venture will be 30% for GATX and 70% for Brookfield Infrastructure.
The joint venture will be funded through general operating cash flow and financing activity, with a fully underwritten $3.2 billion 5-year unsecured term loan and a $250 million unsecured revolving credit facility provided by various financial institutions.
The 105,000 railcar operating lease portfolio consists primarily of freight cars (95%), spread across a diverse mix of specific car types, and the current fleet utilization is approximately 97%.
GATX expects the impact of the transaction to be modestly accretive to earnings per share in the first full year after closing, with more material contributions thereafter. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the first quarter of 2026 or sooner.
The detailed financial statement impact and the joint venture financing structure are also provided in the press release. GATX Corporation will hold an investor call on May 30, 2025, to discuss the transaction. As a result of these announcements, the company's shares have moved 10.34% on the market, and are now trading at a price of $161.62. If you want to know more, read the company's complete 8-K report here.
