GATX and Brookfield Infrastructure will jointly acquire Wells Fargo rail assets in a $4.4 billion deal, adding 105,000 high-utilization railcars to their logistics portfolio. This is reported by the railway transport news portal Railway Supply.

GATX and Brookfield Infrastructure will jointly acquire Wells Fargo rail assets in a $4.4 billion deal, adding 105,000 high-utilization railcars to their logistics portfolio
Source, photo: www.railway-technology.com

The portfolio—composed of 95% freight railcars—operates at a 97% utilization rate and includes various car types. GATX will manage these assets through a new joint venture with Brookfield Infrastructure.

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Strategic Joint Venture Formed Around Wells Fargo Rail Assets

The ownership split gives GATX a 30% stake and Brookfield the remaining 70%. GATX retains the option to gain full ownership of the venture within ten years.

In addition to the Wells Fargo rail assets, Brookfield will also acquire a finance lease portfolio comprising 23,000 railcars and 440 locomotives. GATX will oversee operations for this fleet as well.

Robert Lyons, GATX’s CEO, emphasized that the company will maintain financial flexibility while expanding its asset base. He noted the strategic value and long-term potential of the acquired railcars.

Wells Fargo Rail Assets Strengthen Freight Expansion Plans

GATX plans to fund its $400 million equity contribution using cash flow and structured financing. Future call options allow the company to buy Brookfield’s stake.

To support the joint venture, lenders have underwritten a $3.2 billion unsecured term loan for five years and a $250 million unsecured revolving credit line.

Wells Fargo Securities, BofA Securities, MUFG Bank, and SMBC arranged the financing. BofA also advised both GATX and Brookfield Infrastructure.

Legal support came from Mayer Brown for GATX and from Skadden, Arps for Brookfield. The deal awaits regulatory approval and is expected to close in early 2026.

Source, photo: www.railway-technology.com

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