CHICAGO, Dec. 18 /PRNewswire-FirstCall/ -- GATX Rail today announced that
it has acquired the remaining interest in the companies comprising KVG
Kesselwagen, a leading European railcar lessor. GATX Rail has held a minority
interest in KVG since 1997 and this transaction will result in 100% ownership
by GATX Rail. Terms of the transaction were not disclosed.
GATX Rail and KVG have developed a strong working relationship over the
past five years, and this acquisition will further expand GATX's presence in
Europe where it currently has an interest in nearly 30,000 rail cars,
including 9,500 tank and specialized rail cars at KVG. KVG will continue to
expand its close working relationship with DEC, GATX's 100% owned rail car
lessor headquartered in Warsaw. GATX Rail also owns a minority interest in
AAE Cargo, a European freight car lessor.
Mr. D. Ward Fuller, president of GATX Rail Europe, stated, "We have
established a strong position in Europe and we are excited about the growth
opportunities in this market. With the acquisition of KVG, we will have an
expanded and more efficient platform from which to pursue these opportunities.
Additionally, I am extremely pleased that Rainer Baumgarten and Gernot
Schwayer, the founders of KVG, will be staying and continuing to lead this
operation. Their insight, experience, and strong customer relationships will
be critical to our success as we seek to grow this business."
KVG, formed in 1991 by Mr. Baumgarten and Mr. Schwayer, has headquarters
in Hamburg and Vienna. Mr. Baumgarten, managing director of KVG, stated,
"Five years ago, we chose GATX Rail as a partner because they shared our
vision of the European rail market. Through working together, we have also
learned that we share a commitment to customer service, quality, and
reliability that sets us apart from our competition."
GATX COMPANY DESCRIPTION
GATX Rail is a division of GATX Financial Corporation, a wholly owned
subsidiary of GATX Corporation (NYSE: GMT). GATX is a specialized finance and
leasing company combining asset knowledge and services, structuring expertise,
partnering and risk capital to serve customers and partners worldwide. GATX
specializes in railcar and locomotive leasing, aircraft operating leasing, and
information technology leasing.
ABOUT KVG KESSELWAGEN
KVG Kesselwagen as referenced herein is comprised of KVG Kesselwagen
Vermietgesellschaft mbH, headquartered in Hamburg, Germany, and KVG
Kesselwagen Vermietgesellschaft m.b.h., headquartered in Vienna, Austria.
FORWARD-LOOKING STATEMENTS
Certain statements within this document may constitute forward-looking
statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. These statements are identified by
words such as "anticipate," "believe," "estimate," "expects," "intend,"
"predict," or "project" and similar expressions. This information may involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Although the Company believes that the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, such statements are subject to risks and uncertainties
that could cause actual results to differ materially from those projected.
Risks and uncertainties include, but are not limited to, general economic
conditions; aircraft and railcar lease rate and utilization levels; conditions
in the capital markets and the potential for a downgrade in our credit rating,
either of which could have an effect on our borrowing costs or our ability to
access the markets for commercial paper or secured and unsecured debt;
dynamics affecting customers within the chemical, petroleum and food
industries; unanticipated costs or issues arising from the Federal Railroad
Administration's Railworthiness Directive HM-04 or subsequent regulatory
rulings that impact the economic value of assets; competitors in the rail and
air markets who may have access to capital at lower costs that GATX;
additional potential write-downs and/or provisions within GATX's portfolio;
impaired asset charges; and general market conditions in the rail, air,
technology, venture, and other large-ticket industries.
Investor, corporate, financial, historical financial, photographic and
news release information may be found at http://www.gatx.com .
SOURCE GATX Corporation
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CONTACT:
Analysts & Investors, Robert C. Lyons, Vice
President, Investor Relations of GATX Corporation,
+1-312-621-6633
NOTE TO EDITORS: To be removed from the contact list or to
request additional copies of this release: Irma Dominguez,
+1-312-621-8799, irma.dominguez@gatx.com
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