VTG enters grain transport market
- Purchase of some 1,100 grain silo wagons from the Ermewa Group
- 75 percent share acquired in rail logistics company TMF
Hamburg, July 12, 2010. The Hamburg-based wagon hire and rail logistics company VTG Aktiengesellschaft (WKN: VTG999) today signed contracts for the purchase of some 1,100 grain silo wagons from Ermewa Ferroviaire SAS and to buy a 75 percent shareholding in the French rail logistics company TMF S.A. The 75 percent shareholding in grain transport and wagon hire operations was a part of the Ermewa Group’s operations. The contracting parties have agreed not to disclose the purchase price. The contracts of sale remain subject to approval by the antitrust authorities.
“With the purchase of the grain transport business and the grain silo wagons of the Ermewa Group, we have scored an all-round coup, as we have not only gained entry to the European grain wagon and logistics market but are also again making use of the great synergies between our divisions of Wagon Hire and Rail Logistics”, comments Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft.
VTG is thus entering the lucrative European market for rail transport of grain products on a considerable scale. This also represents a further step towards diversifying the wagon fleet in transport markets that have basic transport volumes with long-term stability. VTG already has initial experience in this market in Spain and on routes between Germany and Eastern Europe. Another way in which this move will strengthen the wagon hire and rail logistics operations of the Group is through increasing the capacity utilization of VTG’s own repair workshop in France, while the company’s German construction plant, Waggonbau Graaff, will contribute its expertise in the building of grain wagons.
VTG is purchasing Ermewa’s 75 percent shareholding in TMF. The remaining 25 percent share in TMF is held by Express-Interfracht Internationale Spedition GmbH, a subsidiary of Rail Cargo Austria. In addition, VTG is buying approx. 1,100 used freight wagons for grain transport directly from Ermewa. In 2009, TMF generated revenue of EUR 59 million and had 25 employees, mostly in France. The company also has three small subsidiaries in Belgium, the Netherlands, and Germany. In 2009, TMF transported some 3 million tonnes of grain, making it one of the two largest French providers in this market. France is one of Europe’s largest grain markets, with a high level of export within the region. Overall, the trend in the grain market has been stable in recent years. The trend towards biofuels is also increasingly benefiting the level of trade in and transport of grain.
VTG Aktiengesellschaft is one of Europe’s leading wagon hire and rail logistics companies. The company has the largest private wagon fleet in Europe. Globally, the fleet consists of some 50,000 wagons, with a focus on tank cars and state-of-the-art high capacity freight cars and flat cars. In addition to the hiring of wagons, the Group offers global tank container transports and comprehensive multi-modal logistics services, mainly around rail transport.
With the combination of its three interlinked divisions Wagon Hire, Rail Logistics and Tank Container Logistics, VTG offers its customers a high-performance platform for international transport of their freight. The Group has many years of experience and specific expertise, in particular in the transport of liquid and sensitive goods. Its customers include numerous well-known companies from almost every industrial sector, for example the chemical, petroleum, automotive and paper industries.
In the financial year 2009, VTG generated revenue of EUR 581.5 million and operating profit (EBITDA) of EUR 149.4 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, Asia and North America. As at 31 December 2009, VTG had 963 employees worldwide in consolidated companies. Since June 2007, VTG AG has been listed on the official Prime Standard market of the Frankfurt Stock Exchange and also on the SDAX (WKN: VTG999).
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