Wells Fargo’s First Union Rail to Acquire GE Railcar Services
September 30 2015 - 6:00PM
Business Wire
Wells Fargo & Company (NYSE: WFC) 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.
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.”
About First Union Rail
Serving more than 500 customers in North America, First Union
Rail offers a variety of customized finance and operating lease
structures, as well as marketing and transportation management
services with a wide selection of box cars, covered hoppers,
gondolas, open-top hoppers, flat cars, tank cars, intermodal
equipment and locomotives. With an extensive fleet of railcars
diversified across 22 commodity groups and a locomotive fleet of
switchers, and 4 and 6 axle units, First Union Rail offers its
customers a large asset base supported by a team of experienced
professionals familiar with all types of rail equipment.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide,
diversified, community-based financial services company with $1.7
trillion in assets. Founded in 1852 and headquartered in San
Francisco, Wells Fargo provides banking, insurance, investments,
mortgage, and consumer and commercial finance through 8,700
locations, 12,800 ATMs, the internet (wellsfargo.com) and mobile
banking, and has offices in 36 countries to support customers who
conduct business in the global economy. With approximately 266,000
team members, Wells Fargo serves one in three households in the
United States. Wells Fargo & Company was ranked No. 30 on
Fortune’s 2015 rankings of America’s largest corporations. Wells
Fargo’s vision is to satisfy our customers’ financial needs and
help them succeed financially. Wells Fargo perspectives are also
available at Wells Fargo Blogs and Wells Fargo Stories.
Cautionary Statement About Forward-Looking Statements
This news release contains forward-looking statements about our
future financial performance and business. Because forward-looking
statements are based on our current expectations and assumptions
regarding the future, they are subject to inherent risks and
uncertainties. Do not unduly rely on forward-looking statements as
actual results could differ materially from expectations.
Forward-looking statements speak only as of the date made, and we
do not undertake to update them to reflect changes or events that
occur after that date. For information about factors that could
cause actual results to differ materially from our expectations,
refer to our reports filed with the Securities and Exchange
Commission, including the discussion under “Risk Factors” in our
Annual Report on Form 10-K for the year ended December 31, 2014, as
filed with the Securities and Exchange Commission and available on
its website at www.sec.gov.
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version on businesswire.com: http://www.businesswire.com/news/home/20150930006863/en/
Wells Fargo & CompanyJen Hibbard, 415-396-4609
(Media)jen.hibbard@wellsfargo.com@jenhibbardWFJim Rowe,
415-396-8216 (Investors)jim.rowe@wellsfargo.com
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