Brookfield & GATX Acquire Wells Fargo Rail | $4.4B Deal
- Brookfield Infrastructure Partners and GATX Corporation have established a joint venture to purchase Wells fargo’s rail equipment leasing operations in a deal valued at approximately $4.4 billion.
- Under the terms, Brookfield Infrastructure Partners will initially hold a 70% stake in the joint venture, while GATX will own the remaining 30%. GATX also has the option...
- GATX, a Chicago-based transportation asset manager, will oversee the commercial and operational activities of the acquired assets.
Brookfield Infrastructure and GATX are making waves! They’ve formed a joint venture to acquire Wells Fargo’s rail equipment leasing business in a massive $4.4 billion deal. This strategic move will see the transfer of approximately 105,000 railcars, with GATX managing the assets and brookfield holding the majority stake initially. this acquisition allows Brookfield to expand its infrastructure investments while giving GATX a critically importent boost. The deal, financed by major institutions, is expected to close by Q1 2026. News directory 3 has the scoop on this breaking industry development. Discover what’s next for this expanding rail venture!
brookfield, GATX Acquire wells Fargo Rail Leasing Business in $4.4B JV
Updated May 30, 2025
Brookfield Infrastructure Partners and GATX Corporation have established a joint venture to purchase Wells fargo’s rail equipment leasing operations in a deal valued at approximately $4.4 billion. The agreement, announced Friday, involves the transfer of Wells Fargo’s entire rail operating lease portfolio, which includes about 105,000 railcars, primarily freight cars boasting a 97% utilization rate.
Under the terms, Brookfield Infrastructure Partners will initially hold a 70% stake in the joint venture, while GATX will own the remaining 30%. GATX also has the option to acquire full ownership within the next 10 years. This strategic move allows Brookfield Infrastructure to further expand its infrastructure investments, while providing GATX with a significant boost to its rail asset management capabilities.
GATX, a Chicago-based transportation asset manager, will oversee the commercial and operational activities of the acquired assets. The company is contributing $400 million in equity,funded through operating cash flow and financing. Brookfield Infrastructure partners, the infrastructure investment arm of Brookfield Asset Management, has been active this year, including divesting its stake in Natural gas Pipeline Company of America and acquiring Colonial Enterprises.
The transaction is financed by a $3.2 billion five-year unsecured term loan and a $250 million unsecured revolving credit facility. Wells Fargo Securities, BofA Securities, MUFG Bank, and Sumitomo Mitsui Banking Corporation fully underwrote the financing. The deal is anticipated to close in the first quarter of 2026 or earlier. BofA Securities advised both GATX and Brookfield Infrastructure Partners,while Mayer Brown provided legal counsel to GATX,and Skadden,Arps,Slate,Meagher & Flom advised Brookfield Infrastructure Partners. Wells Fargo received counsel from Wells Fargo Securities and Simpson Thacher & Bartlett.
What’s next
Upon completion of the acquisition,GATX will integrate the acquired railcar portfolio into its existing operations,focusing on maximizing asset utilization and providing thorough railcar leasing solutions to its customers.The joint venture aims to capitalize on the strong demand for rail transport and the long-term growth potential of the rail equipment leasing market.