Financial News

31/May/2011

DGAP-News: VTG Aktiengesellschaft: VTG purchases the Railcraft group of companies - gateway to operations in the CIS and Baltic markets



VTG Aktiengesellschaft / Key word(s): Acquisition

31.05.2011 / 11:00

Press Release

VTG purchases the Railcraft group of companies - gateway to operations in the CIS and Baltic markets

- Some 870 rail tank cars for mineral oil taken over together with client list
- Development of the broad gauge business 
- Experienced staff at all three sites

Hamburg, 31 May 2011. As of June 1st, 2011, VTG Aktiengesellschaft (WKN: VTG999) will take over the Railcraft group of companies with offices in Espoo, Finland, Moscow, Russia and Tallinn, Estonia. Railcraft rents out its own and leased rail tank cars for mineral oil to customers in the CIS and the Baltic States, in particular in Russia and the Ukraine. The parties have agreed to keep the purchase price confidential.
'For us, the Railcraft takeover opens up an operations gateway into the CIS and Baltic markets. This purchase enables us to continue expanding our broad gauge wagon hire business', explains Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. 'Altogether, this transaction affords us the opportunity to enter the world's second largest railway market with a high quality fleet, an experienced team, and an established customer base on a clear basis and under limited risk conditions', adds Fischer.
Long freight routes, the special climate conditions, and the raw material driven economy mean that railways are the backbone of the CIS transport system. VTG had already taken these circumstances into account in 2008 with the foundation of a subsidiary in Moscow. As early as the late 90s, VTG had already developed rail tank cars capable of travelling on both the Russian and the Western European railway network. The resulting know-how can be incorporated into the new business. In addition, Railcraft's transport agreement with the Russian Railways will in future also enable VTG's Rail Logistics Division to offer freight rates within the CIS and the Baltic without needing to resort to intermediaries.

Railcraft's own fleet comprises more than 560 wagons, and some 310 additional wagons are leased. The entire fleet is currently working at 100 percent utilisation. Railcraft was founded in 1998, so that many of its customer relationships already date back to many years. By also taking over all 14 fulltime employees of the Railcraft Group, seven of whom are based in Russia, five in Estonia, and two in Finland, VTG can expand its business activities with an experienced team.

About VTG:
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, paper and agricultural industries.
In the financial year 2010, VTG generated revenue of EUR 629.4 million and operating profit (EBITDA) of EUR 154.4 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 2010, VTG had 999 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).

Media contact:
Monika Gabler
Head of Corporate Communications
Telephone:      +49 (0) 40 23 54-1341
Fax:            +49 (0) 40 23 54-1340
Email:          monika.gabler@vtg.com


Investor Relations contact:
Felix Zander
Head of Investor Relations
Telephone:      +49 (0) 40 23 54-1351
Fax:            +49 (0) 40 23 54-1350
Email:          felix.zander@vtg.com

Further information at www.vtg.com


End of Corporate News

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Language: English Company: VTG Aktiengesellschaft Nagelsweg 34 20097 Hamburg Deutschland Phone: 040 2354 0 Fax: 040 2354 1199 E-mail: info@vtg.de Internet: www.vtg.de ISIN: DE000VTG9999 WKN: VTG999 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart  
 
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