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GATX Acquires Tank Container Lessor Trifleet for 175M Euros

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In a bid to boost its railcar leasing operations, GATX Corporation (GATX - Free Report) completed the buyout of the world’s fourth-largest tank container lessor company — Trifleet Leasing Holding. This Netherlands-based tank lessor company owns and manages a fleet of more than 18,000 tank containers leased to a huge customer base in chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries. The deal worth approximately €175 million was closed on Dec 29, 2020.

At the time of the closure of the all-cash deal, GATX’s president and CEO Brian A. Kenney stated, “Trifleet complements our existing railcar leasing business and shares GATX’s approach of striving for the highest levels of safety, quality, customer service and environmentally responsible performance”.

We are positive about GATX’s buyout of the Dutch company, which further widens its customer base across the globe. In fact, Kenney stated that “We are committed to strengthening Trifleet’s position in the tank container leasing market by leveraging GATX’s extensive global customer base and experience in managing long-lived, widely used transportation assets.”  

Apart from the Trifleet buyout, GATX’s decision to sell its struggling American Steamship segment to Rand Logistics earlier this year is indicative of its focus on its core areas of strength.

Zacks Rank & Other Stocks to Consider

GATX currently carries a Zacks Rank #2 (Buy).

Investors interested in the broader Zacks Transportation sector can also consider stocks like Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , FedEx Corporation (FDX - Free Report) and Herc Holdings Inc. (HRI - Free Report) . Knight-Swift carries a Zacks Rank #2, while FedEx and Herc Holdings sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, FedEx and Herc Holdings is pegged at 15%, 12% and 12.6%, respectively.

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