US market position strengthened: Vossloh buys Cleveland Track Material
Only a few weeks after buying Pohl Corp., Vossloh AG is acquiring a second US rail switch manufacturer, Cleveland Track Material, Inc., headquartered in Cleveland, Ohio. A share sale and transfer agreement on the takeover of a 100-percent stake was signed by the parties this Wednesday. The price (enterprise value) is $42.5 million including financial debt. The deal is still subject to approval from Vossloh AG’s Supervisory Board.Cleveland Track Material manufactures rail switches and their components for the large US railroad companies and local transit operators. With provisional sales of approximately $45 million in 2006, the corporation’s size is comparable to the recently acquired Pohl Corp. (provisional sales of about $53 million in 2006). Cleveland Track Material employs a workforce of some 260 at its two locations in Cleveland, Ohio, and Memphis, Tennessee. Until now family owned, the corporation will continue under the same name.
Even now, Cleveland Track Material meets the challenging financial benchmarks set by the Vossloh Group which expects, moreover, synergies between its two US subsidiaries, especially in the procurement area, to impact favorably on profitability.
“With the acquisition of Pohl and Cleveland we are accelerating the consolidation of the US switch market,” commented Gerhard Eschenröder, CEO of Vossloh AG. “These two subsidiaries have now made us a formidable number 3 in the USA and given us a solid base for further developing our other business units in this growth market.”
Werdohl, 4.4.2007
Contact:
Dr. Phoebe Kebbel
Hering Schuppener Consulting
Phone: (+49-69) 92 18 74 77
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Email: pkebbel@heringschuppener.com