Vossloh acquires rail services business
- Acquirees will form a new business unit
- Entry into inviting rail services market
- Capabilities in core rail infrastructure market consolidated
- Profit contribution expected as early as 2010
Vossloh AG is adding a rail services business unit to its lineup and, to this end, acquiring the corresponding companies of the Stahlberg Roensch Group, Seevetal near Hamburg, as well as LOG Logistikgesellschaft Gleisbau mbH and ISB Instandhaltungssysteme Bahn GmbH of the Hannover-based Contrack Group. The acquisitions cover seven German locations specializing in complex logistics solutions, the welding and preventive maintenance of rails. These are segments in which the acquirees lead the German market. In the current fiscal year their sales will probably total some €80 million. For Vossloh, the move means a significant reinforcement of its Rail Infrastructure division’s capabilities.
The parties executed today, December 14, 2009, the corresponding sale and transfer agreement, based on enterprise values of €100 million. The agreed total price equals the enterprise values less the net financial debt taken over as of December 31, 2009. The deal, which is subject to a confirming due diligence report and the approval from Vossloh’s Supervisory Board and the antitrust authority, is scheduled to take economic effect as of January 1, 2010.
“The acquisition of this highly specialized type of business is an outstanding strategic addition to our core rail infrastructure business. We are now entering the attractive rail services sector,” says Werner Andree, Vossloh AG’s CEO. “We expect this new business unit to contribute a profit as early as 2010 to the Group’s.”
The unit will be named Vossloh Rail Services and form part of the Rail Infrastructure division. Vossloh aims to expand the operations on an international scale.
This year Vossloh had already transacted three smallish takeovers: in April, 2009, it acquired APS Electronic AG, Switzerland, in order to extend the component and service business of its Electrical Systems unit. Then, in July 2009, it added to its Switch Systems unit the switch and overhead line business of Nuova Sima Sud, Italy. This was followed in October 2009 by a majority stake in the Texas manufacturer of signaling equipment, Global Rail Systems, Inc., a move that is shoring the US operations of Switch Systems. Each of these newcomers generates annual sales of single-digit million euros.
Werdohl, December 14, 2009
Media contact:
Uwe Jülichs
Head of Corporate Communications
Vossloh AG
Phone: (+49-2392) 52-608
Mobile: (+49 172) 2909852
Email: uwe.juelichs@ag.vossloh.com
Investor contact:
Lucia Mathée
Head of Investor Relations
Vossloh AG
Phone: (+49-2392) 52-359
Email: investor.relations@ag.vossloh.com
Today's Vossloh is a global player in the rail technology markets. The Group focuses on its core businesses of rail infrastructure, rail vehicles, and electric buses. Reflecting this focus, Vossloh's two divisions of Rail Infrastructure and Motive Power&Components operate under the roof of MDAX-listed Vossloh AG. In fiscal 2008, almost 4,700 employees generated sales of over €1.2 billion and an EBIT of €137.7 million.