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June 30, 2022

GIP and ADIA to acquire controlling stake in rail logistics firm VTG

VTG serves a range of customers across the industrial, logistics and railway undertaking sectors.

A consortium of funds managed by Global Infrastructure Partners (GIP) and a wholly owned arm of Abu Dhabi Investment Authority (ADIA) have agreed to purchase a 72.5% holding in German rail logistics company VTG Aktiengesellschaft.

The stake is being acquired from Morgan Stanley Infrastructure Partners (MSIP) unit Deodoro Holding and Joachim Herz Stiftung. The pair have 57.55% and 15% stakes in VTG, respectively.

Subject to customary regulatory closing conditions, the deal values VTG at around €7bn.

This transaction will see ADIA and GIP having an equal share of VTG’s controlling interest.

Canadian public pension fund OMERS will continue to hold its 27.5% indirect interest in VTG, which has nearly 88,500 railcars in its fleet.

Hamburg-based VTG has tank wagons, intermodal wagons, standard freight wagons, and sliding-wall wagons in its fleet, in addition to around 5,000 tank containers.

GIP chairman and CEO Adebayo Ogunlesi said: “This acquisition is aligned with GIP’s energy transition and decarbonisation strategy given significant government support for the European rail sector as one of the most cost-effective tools for delivering on net zero emissions targets.”

VTG caters to clients across the industrial, logistics and railway undertaking sectors, and has a pan-European presence.

The company also offers multimodal logistical services and integrated digital solutions besides hiring out rail freight wagons and tank containers.

MSIP managing director Christoph Oppenauer said: “MSIP had identified VTG early on as a remarkably resilient transport asset with a stable track-record and viewed it as having strong growth potential.

“Through multiple transformational measures and consistent portfolio alignment, MSIP believes it has prepared the company for the next stage of its growth story.”

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