US market access: Vossloh buys rail switch manufacturer Pohl
Vossloh AG is buying Pohl Corp., a manufacturer of rail switches based in Reading, Pennsylvania, USA, and thus entering the North American market for rail infrastructure. Pohl Corp. produces rail switches and switch components besides trading in new and used rails and rail accessories. With sales estimated at $53 million in 2006, Pohl is the third biggest supplier in this segment in the United States.An asset deal was signed this Monday. The provisional price is $21 million and is subject to adjustment according to how net working capital develops. The business will in future operate as Vossloh Track Material, Inc. and be headquartered in Reading, PA. The transaction is subject to approval by Vossloh AG’s Supervisory Board.
In September 2006, Vossloh had announced a strategic refocus along with an international expansion strategy specifically for its Rail Infrastructure division. With its Switch Systems business unit (part of Rail Infrastructure) Vossloh leads the market in many regions but is so far unrepresented in the USA, a market whose rail infrastructure segment is clearly outpacing the European.
“In acquiring Pohl Corp., we are taking a foremost position in the high-growth US market,” said Gerhard Eschenröder, CEO of Vossloh AG. “At the same time we have taken a stride toward our declared aim of 30 percent sales outside of Europe.”
The new Vossloh Track Material, Inc. subsidiary will be a profitable company and even this year contribute to Vossloh AG’s earnings. “We have identified improvement potential for us to harness. We expect this company to meet our demanding criteria as early as 2008.”
Werdohl, March 5, 2007
Contact:
Dr. Phoebe Kebbel
Hering Schuppener Consulting
Phone: (+49-69) 92 18 74 77
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Email: pkebbel@heringschuppener.com