The FINANCIAL — Wells Fargo & Company announced that its railcar finance, leasing and fleet management business, First Union Rail, has signed an agreement to purchase GE Railcar Services from GE Capital.
The transaction, which will add to the existing fleet more than 77,000 railcars and just over 1,000 locomotives as well as associated operating and long-term leases, is expected to close by end of Q1 2016. Terms of the transaction are not being disclosed, according to Wells Fargo.
Marmon Holdings, Inc., a Berkshire Hathaway company, separately announced that it has acquired substantially all of GE Railcar Services’ owned fleet of railroad tank cars. In a separate transaction, Marmon has also agreed to acquire certain GE Railcar Repair Services repair and maintenance facilities.
“GE Railcar Services, with its high quality asset base, has a long history of strength and stability that will add significantly to the quality and diversification of our existing fleet,” said Barbara Wilson, president, First Union Rail. “We greatly value our client relationships and look forward to meeting the industry’s growing demand for rail cars.”
The acquisition of GE’s railcar and locomotive fleet will make First Union Rail the second largest and most diverse railcar and locomotive leasing company in North America. A division of Wells Fargo since 1994, over half of First Union Rail’s customers have relationships with other Wells Fargo businesses.
“First Union Rail integrates well with the many solutions Wells Fargo offers its corporate and commercial customers to help them succeed financially,” said Ed Blakey, head of Wells Fargo Specialized Lending & Investment. “We look forward to introducing GE Railcar Services’ customers to Wells Fargo’s broad suite of financial solutions.”