VTG Aktiengesellschaft / Acquisition
29.07.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Press release
VTG takes over established rail freight car manufacturer Graaff
Securing scarce production capacity for high-value rail freight cars
Access to superior engineering design expertise and numerous approvals
Hamburg, 29 July 2008 VTG Aktiengesellschaft (WKN: VTG999/ISIN:
DE000VTG9999), Hamburg, is acquiring all the assets of the rail car
manufacturing segment of the Graaff Group, Elze, thereby securing
production capacity for its rail freight cars in Europe. The parties have
agreed to keep confidential the purchase price for the insolvent
manufacturer of rail freight cars. The takeover still must be approved by
the German anti-trust office (Kartellamt).
'Through the acquisition of Graaff, we are expanding our business model by
the activity of newbuilds for securing scarce production capacity to build
special rail freight cars. Due to our existing experience in specificating
and designing many different types of rail cars, we will be able to quickly
integrate the newbuidling plant in Elze, near Hanover, into the VTG Group.
This allows us to secure a substantial portion of our basic supplies with
new special rail freight cars for additional organic growth, which is
particularly significant in a booming rail logistics market. We expect to
profit from synergy effects in procurement, especially in the purchase of
components and parts for which we have developed new procurement
strategies,' says CEO Dr. Heiko Fischer, explaining the advantages of the
takeover.
The Graaff Group has been building special freight cars at the Elze site in
Lower Saxony since 1914. Its products include, in particular, chemical tank
cars with stainless steel tanks. At the same time, the company has superior
engineering design expertise in the construction of chemical tank cars and
holds numerous approvals. Combined with VTGs existing experience regarding
market requirements, this offers the promise of future innovations. The
Elze workshop has a production capacity of approximately 300 rail freight
cars per year. The rail car manufacturer was forced to file for insolvency
in March of 2008, due to difficulties in handling a large order and the
tight liquidity situation.
VTG is taking over the insolvency estates assets and will continue the
company's focus on producing tank cars - particularly chemical tank cars
that are in high demand. As part of the VTG takeover, around 154 employees
at the Elze plant will retain their jobs.
'We are convinced that we will be able to proceed profitably with rail
freight tank car production after successfully reorganising the plant and
procurement. We plan to more closely integrate engineering design,
materials management and production. Although we will utilize a good part
of Graaffs production capacity ourselves, we also intend to supply
existing and new customers in future. However, we are not planning to
manufacture all the rail freight cars we need ourselves,' notes Jürgen
Hüllen, VTGs Director of Engineering and Procurement.
About VTG:
VTG Aktiengesellschaft is one of Europes leading rail logistics and wagon
hire companies. With about 48,400 rail freight cars, VTG has Europes
largest private wagon fleet. In addition to the hiring of rail freight
cars, the Group offers global tank container transport and comprehensive
multi-modal logistics services mainly around rail transport.
With the combination of its three interrelated divisions Wagon Hire, Rail
Logistics and Tank Container Logistics VTG offers its clients a
high-performance platform for international transport of their freight. The
Group has many years of experience and specific know-how in particular in
the transport of liquid and sensitive goods. Its customers include numerous
well-known companies from almost all industrial sectors such as, for
example, chemicals, mineral oil, the automobile or paper industries.
In the financial year 2007 VTG generated operating revenues of EUR 541.4
million and an operating result (EBITDA) of EUR 137.0 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
March 2008 VTG employed 831 employees worldwide in consolidated companies.
Since June 2007 VTG AG has been listed on the official Prime Standard
market of the Frankfurt Stock Exchange (SCN: VTG999).
Press contact:
Bettina Fries
Telephone: +49 (0) 211 430 79-70
Fax: +49 (0) 211 430 79-79
E-Mail: bfries@heringschuppener.com
Investor Relations:
Felix Zander
Telephone: +49 (0) 40 23 54-1351
Fax: +49 (0) 40 23 54-1350
E-Mail: felix.zander@vtg.com
Additional information: www.vtg.com
DGAP 29.07.2008
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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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DGAP-News: VTG Aktiengesellschaft: VTG takes over established rail freight car manufacturer Graaff
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