Corporate News – 13 August 2018

Aves One acquires about 4,400 freight cars from NACCO/CIT

  • Volume of Aves One freight car portfolio more than doubles to over EUR 500 million
  • Annual EBITDA contribution of about EUR 28 million expected
  • Stock of logistics assets set to rise to over EUR 1 billion in 2019

Aves One AG, an investor in logistics assets, has signed a purchase agreement for the acquisition of approximately 30% of NACCO Group's freight car fleet, up to now Europe’s fourth largest private freight car rental company. The acquisition is expected to be concluded in the second half of 2018.

In March 2018, the competent competition authority approved the acquisition by VTG AG of CIT Rail Holdings (Europe) SAS, owner of the NACCO Group, on condition that approximately 30% of the freight car stock be sold to a third party. With today´s signing of the contracts by Aves One and Wascosa a major step to comply with the competition authorities’ conditions has been made. Thereby Aves One has doubled its own fleet to about 8,700 freight cars and rail tankers. At an average age of about 16 years, the fleet is very young by industry standards. Once the transaction is concluded, Swiss company Wascosa, which is one of the tenth largest freight car rental companies in Europe, will take over the management of approximately 4,400 newly acquired freight cars and rail tankers and integrate them in their fleet.

Jürgen Bauer, Management Board Member of Aves One AG:
“This acquisition is a milestone in our growth strategy. We are set to more than double the value of our freight car portfolio and overall asset volumes will move towards the billion mark. We’re on the right path to reach our growth targets for 2020 well before time. We are also expecting the new freight car fleet to bring a significantly positive contribution to earnings from the outset.”

Considerable strengthening in the rail division
With the acquisition of the NACCO portfolio, Aves One will more than double the asset volumes of its own freight car portfolio from about EUR 240 million to over EUR 500 million. This will see the rail division become the company's major line of business and future focus of further growth. The other divisions unite logistic assets valuing about EUR 260 million.

The new freight car portfolio will help significantly improve Aves One’s financial data. In the first full year after closing of the transaction, the expected yearly sales contribution will be about EUR 37 million and the expected yearly EBITDA contribution will be about EUR 28 million. The purchase price of the transaction will be carried out without any capital increase.

Transaction considerably accelerates operational growth
Once the transaction is completed, Aves One will be able to significantly step up its rate of growth. The EUR 750 million in asset volumes expected by the end of 2018 has already been exceeded through the acquisition of the freight car fleet. The Management Board also anticipates that the stock value of logistics assets will rise to a volume of over one billion euro in 2019. This target was previously set for 2020.