DGAP-Ad-hoc: VTG Aktiengesellschaft has signed an agreement on the acquisition of all shares of the railcar leasing company Nacco
VTG Aktiengesellschaft / Key word(s): Takeover
As at the date hereof, VTG Aktiengesellschaft ("VTG") has signed an agreement with an indirect subsidiary of CIT Group Inc., New York City, USA, pursuant to which VTG purchases all the shares of CIT Rail Holdings (Europe) SAS, Paris, France. CIT Rail Holdings (Europe) SAS is the owner of the Nacco group, a European railcar leasing company with a fleet of approximately 14,000 rail freight cars.
VTG expects a purchase price of approximately EUR 780 million plus all investments made by the Nacco group in rail freight cars between January 1 2017 and closing date which could sum up to EUR 140 million. The company intends to finance the transaction via a senior loan of up to EUR 500 million, a privately-placed hybrid bond of approximately EUR 300 million and the assumption of existing net debt of approximately EUR 120 million. It is envisaged to refinance the privately-placed hybrid bond via the capital market, potentially via a rights issue for the increase of VTG's capital from the authorized capital.
Depending on the investments in railcars made by Nacco in 2017, VTG expects a sales contribution of approximately EUR 120 million from the acquisition in the year 2018 and an EBITDA (Earnings before interest, taxes, depreciation and amortization) contribution of approximately EUR 100 million before transaction and integration costs.
The transaction is subject to consents and approvals, in particular, the clearance of the transaction by the competent antitrust authorities. The transaction is expected to be closed in the fourth quarter 2017.
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