Financial News

11/December/2007

DGAP-News: VTG Aktiengesellschaft: VTG enters U.S. rail car leasing business



VTG Aktiengesellschaft / Acquisition

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

Hamburg, December 11, 2007 – VTG Aktiengesellschaft (WKN: VTG999), Hamburg, is going to acquire the U.S.-based Texas Railcar Leasing Company (TRLX) and enter the North American rail freight market. A purchase agreement has been signed with the owner of the family business based in McAllen, Texas. Both parties agreed not to disclose information on the purchase price. In acquiring Texas Railcar, VTG continues its international growth trend. The acquisition is expected to close early in 2008.

'The acquisition of Texas Railcar is a key strategic milestone for VTG in extending our core competence in the field of leasing beyond Europe’s borders', emphasizes Dr. Heiko Fischer, CEO of VTG Aktiengesellschaft. 'Our aim is to establish a foothold in the expanding U.S. market and record constant growth by acquiring additional rail freight cars', Fischer continues.

Mrs. Grace Novell, Texas Railcar’s owner stated: 'VTG is without a doubt the best organization to continue the vision my husband Henry Novell and I shared when we founded the company nearly twenty years ago. Our valued customers and employees will be in excellent hands'.
The fast-growing TRLX and its five employees generated in excess of 4.0 million U.S.
dollars in revenues in fiscal 2006. The wagon fleet of over 1,000 rail cars consists mainly of covered and open rail freight cars as well as rail tank cars. TRLX has a broad customer base that is geared to long-term relationships. Its customers are engaged in such industries as chemicals, energy and construction which are based in the U.S., Canada and Mexico. TRLX has a solid customer structure, which has lead to a capacity utilization exceeding 95 percent, and the company’s earnings situation is positive on a sustained basis.

North America is the world’s largest rail logistics market and has good long-term prospects for growth. Experts forecast that total rail freight output in the U.S. will rise by about 3.4 percent per annum until 2011 (source: United States Transport Report Q1 2007, Business Monitor International; 2007). One of the reasons cited for this are the rising freight costs in other sectors such as trucking, relative to rail freight in the U.S.
Its many years’ experience in European rail car hiring business will be beneficial to VTG’s strategic entry on the U.S. market. In Europe, VTG is already the market leader with the largest private fleet of wagons. Moreover, VTG has already been established for years now in the field of tank container logistics in the North American market, where it has a company of its own.
VTG will integrate the new U.S. activities into its Wagon Hire division.
 
About VTG AG:
VTG is a leading European rail logistics company. In its core market of Europe, the Company offers wagon hire and a broad range of rail logistics services to its well-known, major clients in the chemical, oil, automotive and paper industries. VTG is also active in the global market for tank container logistics.

With about 48,200 rail freight cars, VTG has Europe’s largest private wagon fleet. The Company’s track record includes many years of experience and specialist know-how particularly in transporting liquid and sensitive goods. With the combination of its three strong business divisions Wagon Hire, Rail Logistics and Tank Container Logistics, VTG offers its clients a high-performance platform for international transport of their goods.
In 2006, VTG generated operating revenues of EUR 518.6 million and an EBITDA of EUR 112.9 million. The Group’s headquarters are located in Hamburg. Through its subsidiaries, the Company is represented in 33 locations in 9 European countries. On December 31, 2006, the Company had a total of 795 employees across Europe. Furthermore, the VTG Group provides its services in a total of 39 countries, partly through non-consolidated equity holdings and representative offices.

Since June 2007 VTG AG is listed in the Prime Standard of the Frankfurt Stock Exchange.


Press contact: 

Trade Media
Simone Aulert
Head of Communications and Marketing
Phone: +49 (0) 40 2354 1343
Fax: +49 (0) 40 2354 1340
Email: simone.aulert@vtg.com 


Business and Financial Media
Bettina Fries
Phone: +49 (0) 211 430 79 70
Fax: +49 (0) 211 430 79 79
Mail: bfries@heringschuppener.com 

Information also available at www.vtg.com 





Press contact: 

Trade Media
Simone Aulert
Head of Communications and Marketing
Phone: +49 (0) 40 2354 1343
Fax: +49 (0) 40 2354 1340
Email: simone.aulert@vtg.com 


Business and Financial Media
Bettina Fries
Phone: +49 (0) 211 430 79 70
Fax: +49 (0) 211 430 79 79
Mail: bfries@heringschuppener.com 







11.12.2007  Financial News transmitted by DGAP

 
Language:     English
Issuer:       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, Hannover, Düsseldorf, Hamburg, München, Stuttgart  
End of News DGAP News-Service  



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