VTG Rail Inc. has acquired the fleet of American rail car leasing company Redwood Rail in a move that will add 1,135 rail cars to its fleet, enlarging it to about 5,200. VTG also assumed the associated leases as well as Redwood Rail's existing customer relationships. "For us, acquiring the fleet is an important strategic step that will further strengthen our position in the US market," says Chris Schmalbruch, President of VTG Rail. "Having purchased the Sumitomo fleet of around 2,450 rail cars at the end of 2011, we are very pleased to have found another investment that is an excellent fit for us and complements our portfolio."
The rail cars it inherited from Redwood Rail further diversified the buyer's portfolio. In particular, freight cars for the transportation of grain, cement, sand, plastics products and logs have been transferred to VTG. Taking over the existing leases means that, at the same time, VTG has acquired important new customers. These include two class I railroads as well as a global commodities company.
About VTG:
VTG Rail, Inc is the US subsidiary of VTG AG, one of Europe’s leading rail car leasing and rail freight logistics companies, with a fleet consisting of more than 80,000 railcars. VTG AG offers a full-range of services, providing tank cars, standard freight cars, intermodal cars and sliding wall wagons. In addition to the leasing of rail cars, the Group offers comprehensive multi-modal logistics services, mainly around rail transport, and global tank container transports.
With the combination of its three interlinked divisions Railcar, 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 2016, VTG generated revenue of EUR 987 million and operating profit (EBITDA) of EUR 345 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, North America, Russia and Asia. As at 31 December 2016, VTG had 1,443 employees worldwide in consolidated companies. VTG AG is listed on the official Prime Standard market of the Frankfurt Stock Exchange and also on the SDAX (WKN: VTG999).