GATX Buys Over 18,500 Railcars From GE Capital Rail Services For $340 Mln

(RTTNews) - Railcar leasing company GATX Corp. (GMT) Monday announced the purchase of GE Capital Rail Services' North American per diem boxcar fleet, consisting of more than 18,500 boxcars. The purchase price was about $340 million.

Brian Kenney, CEO 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.''

The transaction is expected to be immediately accretive. However, at this point the company is not adjusting its previously announced 2014 earnings guidance.

GATX expects the acquired fleet to generate around $70 million in annual revenue. The average age of the fleet is 34 years relative to the statutory life of 50 years.