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GATX Corporation and Brookfield Infrastructure to Acquire Wells Fargo's Rail Assets

1. GATX partners with BIP to acquire 105,000 railcars for $4.4 billion. 2. BIP holds 70% stake in new joint venture with GATX.

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Why Bullish?

This acquisition represents a significant asset boost for BIP, enhancing its revenue potential. Historically, infrastructure investments have led to positive long-term performance for investment firms.

How important is it?

The substantial financial engagement and strategic asset acquisition show strong potential to positively impact BIP's performance in the rail sector.

Why Long Term?

The acquisition of railcars positions BIP for sustained revenue growth over years, similar to past ventures in infrastructure enhancing properties.

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GATXWFC
CHICAGO--(BUSINESS WIRE)--GATX Corporation (NYSE: GATX) announced today a definitive agreement to acquire approximately 105,000 railcars from Wells Fargo for $4.4 billion through a newly formed joint venture with Brookfield Infrastructure Partners L.P. (“BIP”) (NYSE: BIP; TSX: BIP.UN) and its institutional partners (collectively, “Brookfield Infrastructure”). Initial joint venture equity ownership will be GATX (30%) and Brookfield Infrastructure (70%), with GATX having the option to acquire 100.

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