GATX Corporation (NYSE:GMT) announced its purchase of GE Capital Rail Services’ North American per diem boxcar fleet, consisting of more than 18,500 boxcars. The purchase price was approximately $340 million.
Brian A. Kenney, president and chief executive officer of GATX said, “This fleet acquisition establishes GATX as the leader in the boxcar leasing market and adds a significant number of railcars to our fleet that are critical-use assets for certain important sectors of the North American economy. Many of the customers utilizing this fleet are existing GATX customers, and this acquisition enhances our ability to meet these customers’ broad rail transportation needs. The transaction is expected to be immediately accretive, although at this point we are not adjusting our previously announced 2014 earnings guidance.”
GATX expects the acquired fleet to generate approximately $70 million in annual revenue. The average age of the fleet is 34 years relative to the statutory life of 50 years.
COMPANY DESCRIPTIONGATX Corporation (NYSE: GMT) strives to be recognized as the finest railcar leasing company in the world by its customers, its shareholders, its employees, and the communities where it operates. Controlling one of the largest railcar lease fleets in the world, GATX has provided quality railcars and services to its customers for more than 115 years. GATX has been headquartered in Chicago, Illinois since its founding in 1898. For more information, visit the Company’s website at www.gatx.com. FORWARD-LOOKING STATEMENTS Certain statements in this document may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. These statements refer to information that is not purely historical, such as estimates, projections and statements relating to our business plans, objectives and expected operating results, and the assumptions on which those statements are based. Some of these statements may be identified by words like “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict,” “project” or other similar words. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in our Annual Report on Form 10-K for the year ended December 31, 2013 and other filings with the SEC, and that actual results or events may differ materially from the forward-looking statements.